Correlation Between Ningbo Tip and Beijing Kaiwen
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By analyzing existing cross correlation between Ningbo Tip Rubber and Beijing Kaiwen Education, you can compare the effects of market volatilities on Ningbo Tip and Beijing Kaiwen 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 Ningbo Tip with a short position of Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Beijing Kaiwen.
Diversification Opportunities for Ningbo Tip and Beijing Kaiwen
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education and Ningbo Tip 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 Ningbo Tip Rubber are associated (or correlated) with Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Ningbo Tip and Beijing Kaiwen
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.53 times more return on investment than Beijing Kaiwen. However, Ningbo Tip is 1.53 times more volatile than Beijing Kaiwen Education. It trades about 0.24 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.06 per unit of risk. If you would invest 6,903 in Ningbo Tip Rubber on September 9, 2025 and sell it today you would earn a total of 6,897 from holding Ningbo Tip Rubber or generate 99.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Beijing Kaiwen Education |
Ningbo Tip and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Beijing Kaiwen
The main advantage of trading using opposite Ningbo Tip and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. Agricultural Bank of | Ningbo Tip vs. China Construction Bank | Ningbo Tip vs. Bank of China |
| Beijing Kaiwen vs. Nanning Chemical Industry | Beijing Kaiwen vs. Yonghui Superstores Co | Beijing Kaiwen vs. Yingde Greatchem Chemicals | Beijing Kaiwen vs. Spring Airlines 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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