Correlation Between Ningbo Tip and LCI Industries
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By analyzing existing cross correlation between Ningbo Tip Rubber and LCI Industries, you can compare the effects of market volatilities on Ningbo Tip and LCI Industries 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 LCI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and LCI Industries.
Diversification Opportunities for Ningbo Tip and LCI Industries
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ningbo and LCI is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and LCI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LCI Industries 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 LCI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LCI Industries has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and LCI Industries go up and down completely randomly.
Pair Corralation between Ningbo Tip and LCI Industries
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 2.7 times more return on investment than LCI Industries. However, Ningbo Tip is 2.7 times more volatile than LCI Industries. It trades about 0.41 of its potential returns per unit of risk. LCI Industries is currently generating about 0.03 per unit of risk. If you would invest 2,662 in Ningbo Tip Rubber on August 19, 2025 and sell it today you would earn a total of 6,809 from holding Ningbo Tip Rubber or generate 255.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. LCI Industries
Performance |
| Timeline |
| Ningbo Tip Rubber |
| LCI Industries |
Ningbo Tip and LCI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and LCI Industries
The main advantage of trading using opposite Ningbo Tip and LCI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, LCI Industries 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 LCI Industries will offset losses from the drop in LCI Industries' long position.| Ningbo Tip vs. China Petroleum Chemical | Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China State Construction | Ningbo Tip vs. China Railway Group |
| LCI Industries vs. United Parks Resorts | LCI Industries vs. Harley Davidson | LCI Industries vs. Greif Bros | LCI Industries vs. Columbia Sportswear |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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