Correlation Between Changchun and Northern United
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun UP Optotech and Northern United Publishing, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Northern United.
Diversification Opportunities for Changchun and Northern United
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Northern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 UP Optotech 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 Changchun i.e., Changchun and Northern United go up and down completely randomly.
Pair Corralation between Changchun and Northern United
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.12 times more return on investment than Northern United. However, Changchun is 1.12 times more volatile than Northern United Publishing. It trades about 0.05 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.02 per unit of risk. If you would invest 2,329 in Changchun UP Optotech on September 3, 2024 and sell it today you would earn a total of 1,826 from holding Changchun UP Optotech or generate 78.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Northern United Publishing
Performance |
| Timeline |
| Changchun UP Optotech |
| Northern United Publ |
Changchun and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Northern United
The main advantage of trading using opposite Changchun and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Focus Media Information | Changchun vs. Jiangsu Yanghe Brewery | Changchun vs. Guangdong Brandmax Marketing | Changchun vs. YLZ Information Tech |
| Northern United vs. Gansu Jiu Steel | Northern United vs. Ming Yang Smart | Northern United vs. Aba Chemicals Corp | Northern United vs. Loctek Ergonomic 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |