Correlation Between NAURA Technology and Grinm Advanced
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By analyzing existing cross correlation between NAURA Technology Group and Grinm Advanced Materials, you can compare the effects of market volatilities on NAURA Technology and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Grinm Advanced.
Diversification Opportunities for NAURA Technology and Grinm Advanced
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NAURA and Grinm is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced Materials 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of NAURA Technology i.e., NAURA Technology and Grinm Advanced go up and down completely randomly.
Pair Corralation between NAURA Technology and Grinm Advanced
Assuming the 90 days trading horizon NAURA Technology is expected to generate 2.91 times less return on investment than Grinm Advanced. But when comparing it to its historical volatility, NAURA Technology Group is 1.43 times less risky than Grinm Advanced. It trades about 0.16 of its potential returns per unit of risk. Grinm Advanced Materials is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Grinm Advanced Materials on September 2, 2024 and sell it today you would earn a total of 1,336 from holding Grinm Advanced Materials or generate 146.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Grinm Advanced Materials
Performance |
| Timeline |
| NAURA Technology |
| Grinm Advanced Materials |
NAURA Technology and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Grinm Advanced
The main advantage of trading using opposite NAURA Technology and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced'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 |
| Grinm Advanced vs. Anhui Gujing Distillery | Grinm Advanced vs. Luyin Investment Group | Grinm Advanced vs. Western Metal Materials | Grinm Advanced vs. Zhejiang Construction Investment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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