Correlation Between NAURA Technology and Guangxi Wuzhou
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By analyzing existing cross correlation between NAURA Technology Group and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on NAURA Technology and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Guangxi Wuzhou.
Diversification Opportunities for NAURA Technology and Guangxi Wuzhou
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between NAURA and Guangxi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of NAURA Technology i.e., NAURA Technology and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between NAURA Technology and Guangxi Wuzhou
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.12 times more return on investment than Guangxi Wuzhou. However, NAURA Technology is 1.12 times more volatile than Guangxi Wuzhou Communications. It trades about 0.05 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.04 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| NAURA Technology |
| Guangxi Wuzhou Commu |
NAURA Technology and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Guangxi Wuzhou
The main advantage of trading using opposite NAURA Technology and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| NAURA Technology vs. Shenyang Blue Silver | NAURA Technology vs. Vanfund Urban Investment | NAURA Technology vs. Shengda Mining Co | NAURA Technology vs. Luyin Investment Group |
| Guangxi Wuzhou vs. Anhui Jianghuai Automobile | Guangxi Wuzhou vs. Songz Automobile Air | Guangxi Wuzhou vs. Fiberhome Telecommunication Technologies | Guangxi Wuzhou vs. Huizhou Speed Wireless |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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