Correlation Between North Copper and Advanced Technology
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By analyzing existing cross correlation between North Copper Shanxi and Advanced Technology Materials, you can compare the effects of market volatilities on North Copper and Advanced 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 North Copper with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Advanced Technology.
Diversification Opportunities for North Copper and Advanced Technology
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Advanced is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and North Copper 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 Copper Shanxi are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of North Copper i.e., North Copper and Advanced Technology go up and down completely randomly.
Pair Corralation between North Copper and Advanced Technology
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 1.37 times more return on investment than Advanced Technology. However, North Copper is 1.37 times more volatile than Advanced Technology Materials. It trades about 0.17 of its potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.09 per unit of risk. If you would invest 816.00 in North Copper Shanxi on October 24, 2024 and sell it today you would earn a total of 107.00 from holding North Copper Shanxi or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. Advanced Technology Materials
Performance |
| Timeline |
| North Copper Shanxi |
| Advanced Technology |
North Copper and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Advanced Technology
The main advantage of trading using opposite North Copper and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, Advanced 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| North Copper vs. Shanghai Newtouch Software | North Copper vs. Sharetronic Data Technology | North Copper vs. Dhc Software Co | North Copper vs. Digiwin Software Co |
| Advanced Technology vs. Hefei Metalforming Mach | Advanced Technology vs. North Copper Shanxi | Advanced Technology vs. Citic Offshore Helicopter | Advanced Technology vs. Marssenger Kitchenware Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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