Correlation Between North Copper and Caihong Display
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By analyzing existing cross correlation between North Copper Shanxi and Caihong Display Devices, you can compare the effects of market volatilities on North Copper and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Caihong Display.
Diversification Opportunities for North Copper and Caihong Display
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and Caihong is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of North Copper i.e., North Copper and Caihong Display go up and down completely randomly.
Pair Corralation between North Copper and Caihong Display
Assuming the 90 days trading horizon North Copper is expected to generate 1.24 times less return on investment than Caihong Display. In addition to that, North Copper is 1.19 times more volatile than Caihong Display Devices. It trades about 0.04 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.06 per unit of volatility. If you would invest 456.00 in Caihong Display Devices on October 30, 2024 and sell it today you would earn a total of 392.00 from holding Caihong Display Devices or generate 85.96% 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. Caihong Display Devices
Performance |
| Timeline |
| North Copper Shanxi |
| Caihong Display Devices |
North Copper and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Caihong Display
The main advantage of trading using opposite North Copper and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
| Caihong Display vs. Anshan Senyuan Road | Caihong Display vs. Longjian Road Bridge | Caihong Display vs. Threes Company Media | Caihong Display vs. Shanghai Xinhua Media |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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