Correlation Between NAURA Technology and Digital China
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By analyzing existing cross correlation between NAURA Technology Group and Digital China Information, you can compare the effects of market volatilities on NAURA Technology and Digital China 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 Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Digital China.
Diversification Opportunities for NAURA Technology and Digital China
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NAURA and Digital is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information 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 Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of NAURA Technology i.e., NAURA Technology and Digital China go up and down completely randomly.
Pair Corralation between NAURA Technology and Digital China
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 0.94 times more return on investment than Digital China. However, NAURA Technology Group is 1.07 times less risky than Digital China. It trades about 0.06 of its potential returns per unit of risk. Digital China Information is currently generating about 0.02 per unit of risk. If you would invest 24,298 in NAURA Technology Group on September 2, 2024 and sell it today you would earn a total of 17,270 from holding NAURA Technology Group or generate 71.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Digital China Information
Performance |
| Timeline |
| NAURA Technology |
| Digital China Information |
NAURA Technology and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Digital China
The main advantage of trading using opposite NAURA Technology and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| NAURA Technology vs. Heren Health Co | NAURA Technology vs. Healthcare Co | NAURA Technology vs. Marssenger Kitchenware Co | NAURA Technology vs. Southchip Semiconductor Technology |
| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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