Correlation Between NAURA Technology and Guangdong Tianhe
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By analyzing existing cross correlation between NAURA Technology Group and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on NAURA Technology and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Guangdong Tianhe.
Diversification Opportunities for NAURA Technology and Guangdong Tianhe
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAURA and Guangdong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of NAURA Technology i.e., NAURA Technology and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between NAURA Technology and Guangdong Tianhe
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 0.98 times more return on investment than Guangdong Tianhe. However, NAURA Technology Group is 1.02 times less risky than Guangdong Tianhe. It trades about 0.05 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.03 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| NAURA Technology |
| Guangdong Tianhe Agr |
NAURA Technology and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Guangdong Tianhe
The main advantage of trading using opposite NAURA Technology and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| NAURA Technology vs. Jiugui Liquor Co | NAURA Technology vs. Shanghai Rongtai Health | NAURA Technology vs. China Reform Health | NAURA Technology vs. De Rucci Healthy |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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