Correlation Between Gansu Huangtai and Northern United
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Northern United Publishing, you can compare the effects of market volatilities on Gansu Huangtai and Northern United 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 Gansu Huangtai with a short position of Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Northern United.
Diversification Opportunities for Gansu Huangtai and Northern United
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Northern is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Northern United go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Northern United
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.61 times more return on investment than Northern United. However, Gansu Huangtai is 1.61 times more volatile than Northern United Publishing. It trades about 0.13 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.0 per unit of risk. If you would invest 1,150 in Gansu Huangtai Wine marketing on October 14, 2024 and sell it today you would earn a total of 428.00 from holding Gansu Huangtai Wine marketing or generate 37.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Northern United Publishing
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Northern United Publ |
Gansu Huangtai and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Northern United
The main advantage of trading using opposite Gansu Huangtai and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Gansu Huangtai vs. Weichai Heavy Machinery | Gansu Huangtai vs. Sinomach General Machinery | Gansu Huangtai vs. Anhui Huilong Agricultural | Gansu Huangtai vs. Offcn Education Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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