Correlation Between Tongling Nonferrous and NAURA Technology
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By analyzing existing cross correlation between Tongling Nonferrous Metals and NAURA Technology Group, you can compare the effects of market volatilities on Tongling Nonferrous and NAURA Technology 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 Tongling Nonferrous with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and NAURA Technology.
Diversification Opportunities for Tongling Nonferrous and NAURA Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongling and NAURA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Tongling Nonferrous 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 Tongling Nonferrous Metals are associated (or correlated) with NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and NAURA Technology go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and NAURA Technology
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.8 times more return on investment than NAURA Technology. However, Tongling Nonferrous Metals is 1.25 times less risky than NAURA Technology. It trades about 0.09 of its potential returns per unit of risk. NAURA Technology Group is currently generating about -0.39 per unit of risk. If you would invest 347.00 in Tongling Nonferrous Metals on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Tongling Nonferrous Metals or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. NAURA Technology Group
Performance |
| Timeline |
| Tongling Nonferrous |
| NAURA Technology |
Tongling Nonferrous and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and NAURA Technology
The main advantage of trading using opposite Tongling Nonferrous and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Tongling Nonferrous vs. Zhejiang Kingland Pipeline | Tongling Nonferrous vs. Ningbo Construction Co | Tongling Nonferrous vs. GKHT Medical Technology | Tongling Nonferrous vs. Double Medical Technology |
| NAURA Technology vs. Agricultural Bank of | NAURA Technology vs. Industrial and Commercial | NAURA Technology vs. Bank of China | NAURA Technology vs. China Construction Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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