Correlation Between NAURA Technology and Zoomlion Heavy
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By analyzing existing cross correlation between NAURA Technology Group and Zoomlion Heavy Industry, you can compare the effects of market volatilities on NAURA Technology and Zoomlion Heavy 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 NAURA Technology with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Zoomlion Heavy.
Diversification Opportunities for NAURA Technology and Zoomlion Heavy
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAURA and Zoomlion is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and NAURA Technology 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 NAURA Technology Group are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of NAURA Technology i.e., NAURA Technology and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between NAURA Technology and Zoomlion Heavy
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.47 times more return on investment than Zoomlion Heavy. However, NAURA Technology is 1.47 times more volatile than Zoomlion Heavy Industry. It trades about 0.05 of its potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.04 per unit of risk. If you would invest 24,315 in NAURA Technology Group on October 15, 2024 and sell it today you would earn a total of 14,050 from holding NAURA Technology Group or generate 57.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| NAURA Technology |
| Zoomlion Heavy Industry |
NAURA Technology and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Zoomlion Heavy
The main advantage of trading using opposite NAURA Technology and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| NAURA Technology vs. Shenyang Blue Silver | NAURA Technology vs. Vanfund Urban Investment | NAURA Technology vs. Shengda Mining Co | NAURA Technology vs. Luyin Investment Group |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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