Correlation Between Piotech and Ningbo Tip
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By analyzing existing cross correlation between Piotech Inc A and Ningbo Tip Rubber, you can compare the effects of market volatilities on Piotech and Ningbo Tip and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Piotech with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Ningbo Tip.
Diversification Opportunities for Piotech and Ningbo Tip
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and Ningbo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber and Piotech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Piotech Inc A are associated (or correlated) with Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Piotech i.e., Piotech and Ningbo Tip go up and down completely randomly.
Pair Corralation between Piotech and Ningbo Tip
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Ningbo Tip. In addition to that, Piotech is 1.16 times more volatile than Ningbo Tip Rubber. It trades about -0.01 of its total potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.0 per unit of volatility. If you would invest 1,617 in Ningbo Tip Rubber on September 30, 2024 and sell it today you would lose (272.00) from holding Ningbo Tip Rubber or give up 16.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Piotech Inc A |
| Ningbo Tip Rubber |
Piotech and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Ningbo Tip
The main advantage of trading using opposite Piotech and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Ningbo Tip can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech vs. Loctek Ergonomic Technology |
| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. Cinda Securities Co | Ningbo Tip vs. Piotech Inc A | Ningbo Tip vs. Dongxing Sec Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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