Correlation Between Changchun High and NAURA Technology
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By analyzing existing cross correlation between Changchun High New and NAURA Technology Group, you can compare the effects of market volatilities on Changchun High 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 Changchun High with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and NAURA Technology.
Diversification Opportunities for Changchun High and NAURA Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and NAURA is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Changchun High 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 Changchun High New 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 Changchun High i.e., Changchun High and NAURA Technology go up and down completely randomly.
Pair Corralation between Changchun High and NAURA Technology
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the NAURA Technology. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.48 times less risky than NAURA Technology. The stock trades about -0.21 of its potential returns per unit of risk. The NAURA Technology Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 37,640 in NAURA Technology Group on November 3, 2024 and sell it today you would earn a total of 60.00 from holding NAURA Technology Group or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. NAURA Technology Group
Performance |
| Timeline |
| Changchun High New |
| NAURA Technology |
Changchun High and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and NAURA Technology
The main advantage of trading using opposite Changchun High and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High 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.| Changchun High vs. Shuhua Sports Co | Changchun High vs. Zhejiang Construction Investment | Changchun High vs. Fujian Longzhou Transportation | Changchun High vs. Sportsoul Co Ltd |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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