Correlation Between Xiamen Insight and Niutech Environment
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By analyzing existing cross correlation between Xiamen Insight Investment and Niutech Environment Technology, you can compare the effects of market volatilities on Xiamen Insight and Niutech Environment 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 Xiamen Insight with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Niutech Environment.
Diversification Opportunities for Xiamen Insight and Niutech Environment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Niutech is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment and Xiamen Insight 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 Xiamen Insight Investment are associated (or correlated) with Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Niutech Environment go up and down completely randomly.
Pair Corralation between Xiamen Insight and Niutech Environment
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to under-perform the Niutech Environment. In addition to that, Xiamen Insight is 1.06 times more volatile than Niutech Environment Technology. It trades about -0.06 of its total potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.05 per unit of volatility. If you would invest 1,178 in Niutech Environment Technology on November 3, 2024 and sell it today you would earn a total of 137.00 from holding Niutech Environment Technology or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Niutech Environment Technology
Performance |
| Timeline |
| Xiamen Insight Investment |
| Niutech Environment |
Xiamen Insight and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Niutech Environment
The main advantage of trading using opposite Xiamen Insight and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Xiamen Insight vs. Dazhong Transportation Group | Xiamen Insight vs. Sanbo Hospital Management | Xiamen Insight vs. De Rucci Healthy | Xiamen Insight vs. RoadMain T Co |
| Niutech Environment vs. Allied Machinery Co | Niutech Environment vs. Panda Financial Holding | Niutech Environment vs. Tjk Machinery Tianjin | Niutech Environment vs. Peoples Insurance of |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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