Correlation Between NAURA Technology and Chongqing Brewery
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By analyzing existing cross correlation between NAURA Technology Group and Chongqing Brewery Co, you can compare the effects of market volatilities on NAURA Technology and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Chongqing Brewery.
Diversification Opportunities for NAURA Technology and Chongqing Brewery
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAURA and Chongqing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of NAURA Technology i.e., NAURA Technology and Chongqing Brewery go up and down completely randomly.
Pair Corralation between NAURA Technology and Chongqing Brewery
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.22 times more return on investment than Chongqing Brewery. However, NAURA Technology is 1.22 times more volatile than Chongqing Brewery Co. It trades about -0.05 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.39 per unit of risk. If you would invest 40,350 in NAURA Technology Group on October 24, 2024 and sell it today you would lose (989.00) from holding NAURA Technology Group or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Chongqing Brewery Co
Performance |
| Timeline |
| NAURA Technology |
| Chongqing Brewery |
NAURA Technology and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Chongqing Brewery
The main advantage of trading using opposite NAURA Technology and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| NAURA Technology vs. Chongqing Brewery Co | NAURA Technology vs. Fujian Oriental Silver | NAURA Technology vs. Xinjiang Baodi Mining | NAURA Technology vs. Western Metal Materials |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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