Correlation Between GRIPM Advanced and Ningbo Construction
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By analyzing existing cross correlation between GRIPM Advanced Materials and Ningbo Construction Co, you can compare the effects of market volatilities on GRIPM Advanced and Ningbo Construction 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 GRIPM Advanced with a short position of Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Ningbo Construction.
Diversification Opportunities for GRIPM Advanced and Ningbo Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRIPM and Ningbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Ningbo Construction go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Ningbo Construction
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.27 times more return on investment than Ningbo Construction. However, GRIPM Advanced is 1.27 times more volatile than Ningbo Construction Co. It trades about 0.01 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.01 per unit of risk. If you would invest 3,281 in GRIPM Advanced Materials on August 30, 2024 and sell it today you would lose (120.00) from holding GRIPM Advanced Materials or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Ningbo Construction Co
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Ningbo Construction |
GRIPM Advanced and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Ningbo Construction
The main advantage of trading using opposite GRIPM Advanced and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| GRIPM Advanced vs. Shandong Gold Mining | GRIPM Advanced vs. Rongsheng Petrochemical Co | GRIPM Advanced vs. Inner Mongolia BaoTou | GRIPM Advanced vs. Jiangxi Ganfeng Lithium |
| Ningbo Construction vs. Cangzhou Mingzhu Plastic | Ningbo Construction vs. GRIPM Advanced Materials | Ningbo Construction vs. Advanced Technology Materials | Ningbo Construction vs. China Publishing Media |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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