Correlation Between North Huajin and Autek China
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By analyzing existing cross correlation between North Huajin Chemical and Autek China, you can compare the effects of market volatilities on North Huajin and Autek China 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 North Huajin with a short position of Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Autek China.
Diversification Opportunities for North Huajin and Autek China
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between North and Autek is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China and North Huajin 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 North Huajin Chemical are associated (or correlated) with Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of North Huajin i.e., North Huajin and Autek China go up and down completely randomly.
Pair Corralation between North Huajin and Autek China
Assuming the 90 days trading horizon North Huajin Chemical is expected to generate 0.92 times more return on investment than Autek China. However, North Huajin Chemical is 1.09 times less risky than Autek China. It trades about 0.0 of its potential returns per unit of risk. Autek China is currently generating about -0.01 per unit of risk. If you would invest 596.00 in North Huajin Chemical on September 14, 2024 and sell it today you would lose (62.00) from holding North Huajin Chemical or give up 10.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
North Huajin Chemical vs. Autek China
Performance |
| Timeline |
| North Huajin Chemical |
| Autek China |
North Huajin and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Autek China
The main advantage of trading using opposite North Huajin and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Autek China vs. Hunan Investment Group | Autek China vs. Nuode Investment Co | Autek China vs. Great Sun Foods Co | Autek China vs. New Hope Dairy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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