Correlation Between Beijing Wandong and Ningbo Tip
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and Ningbo Tip Rubber, you can compare the effects of market volatilities on Beijing Wandong 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 Beijing Wandong with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Ningbo Tip.
Diversification Opportunities for Beijing Wandong and Ningbo Tip
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical 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 Beijing Wandong 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 Beijing Wandong Medical 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 Beijing Wandong i.e., Beijing Wandong and Ningbo Tip go up and down completely randomly.
Pair Corralation between Beijing Wandong and Ningbo Tip
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to under-perform the Ningbo Tip. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Wandong Medical is 1.37 times less risky than Ningbo Tip. The stock trades about -0.01 of its potential returns per unit of risk. The Ningbo Tip Rubber is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,406 in Ningbo Tip Rubber on September 24, 2024 and sell it today you would lose (29.00) from holding Ningbo Tip Rubber or give up 2.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Wandong Medical vs. Ningbo Tip Rubber
Performance |
Timeline |
Beijing Wandong Medical |
Ningbo Tip Rubber |
Beijing Wandong and Ningbo Tip Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Wandong and Ningbo Tip
The main advantage of trading using opposite Beijing Wandong and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong 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.Beijing Wandong vs. New China Life | Beijing Wandong vs. Ming Yang Smart | Beijing Wandong vs. 159681 | Beijing Wandong vs. 159005 |
Ningbo Tip vs. Beijing Wandong Medical | Ningbo Tip vs. Chison Medical Technologies | Ningbo Tip vs. Innovative Medical Management | Ningbo Tip vs. Cowealth Medical China |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |