Correlation Between Xiandai Investment and Northking Information
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By analyzing existing cross correlation between Xiandai Investment Co and Northking Information Technology, you can compare the effects of market volatilities on Xiandai Investment and Northking Information 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 Xiandai Investment with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Northking Information.
Diversification Opportunities for Xiandai Investment and Northking Information
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Northking is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Northking Information go up and down completely randomly.
Pair Corralation between Xiandai Investment and Northking Information
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.95 times more return on investment than Northking Information. However, Xiandai Investment Co is 1.06 times less risky than Northking Information. It trades about 0.2 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.13 per unit of risk. If you would invest 414.00 in Xiandai Investment Co on September 4, 2024 and sell it today you would earn a total of 49.00 from holding Xiandai Investment Co or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Northking Information Technolo
Performance |
| Timeline |
| Xiandai Investment |
| Northking Information |
Xiandai Investment and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Northking Information
The main advantage of trading using opposite Xiandai Investment and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Xiandai Investment vs. Jinsanjiang Silicon Material | Xiandai Investment vs. Shandong Hongchuang Aluminum | Xiandai Investment vs. Aluminum Corp of | Xiandai Investment vs. Cangzhou Mingzhu Plastic |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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