Correlation Between NAURA Technology and YiDong Electronics
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By analyzing existing cross correlation between NAURA Technology Group and YiDong Electronics Technology, you can compare the effects of market volatilities on NAURA Technology and YiDong Electronics 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 YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and YiDong Electronics.
Diversification Opportunities for NAURA Technology and YiDong Electronics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NAURA and YiDong is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics 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 YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of NAURA Technology i.e., NAURA Technology and YiDong Electronics go up and down completely randomly.
Pair Corralation between NAURA Technology and YiDong Electronics
Assuming the 90 days trading horizon NAURA Technology is expected to generate 3.23 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, NAURA Technology Group is 3.94 times less risky than YiDong Electronics. It trades about 0.02 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,165 in YiDong Electronics Technology on November 4, 2024 and sell it today you would lose (20.00) from holding YiDong Electronics Technology or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. YiDong Electronics Technology
Performance |
| Timeline |
| NAURA Technology |
| YiDong Electronics |
NAURA Technology and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and YiDong Electronics
The main advantage of trading using opposite NAURA Technology and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| NAURA Technology vs. Heilongjiang Publishing Media | NAURA Technology vs. Jiangxi Naipu Mining | NAURA Technology vs. Zhengzhou Coal Mining | NAURA Technology vs. Western Mining Co |
| YiDong Electronics vs. HeNan Splendor Science | YiDong Electronics vs. CIMC Vehicles Co | YiDong Electronics vs. Changchun Engley Automobile | YiDong Electronics vs. Shenzhen AV Display Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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