Correlation Between NAURA Technology and Bank of Beijing Co Ltd
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By analyzing existing cross correlation between NAURA Technology Group and Bank of Beijing, you can compare the effects of market volatilities on NAURA Technology and Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Bank of Beijing Co Ltd.
Diversification Opportunities for NAURA Technology and Bank of Beijing Co Ltd
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NAURA and Bank is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Bank of Beijing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Beijing Co Ltd has no effect on the direction of NAURA Technology i.e., NAURA Technology and Bank of Beijing Co Ltd go up and down completely randomly.
Pair Corralation between NAURA Technology and Bank of Beijing Co Ltd
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 2.81 times more return on investment than Bank of Beijing Co Ltd. However, NAURA Technology is 2.81 times more volatile than Bank of Beijing. It trades about 0.11 of its potential returns per unit of risk. Bank of Beijing is currently generating about 0.02 per unit of risk. If you would invest 38,750 in NAURA Technology Group on September 2, 2024 and sell it today you would earn a total of 2,818 from holding NAURA Technology Group or generate 7.27% 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. Bank of Beijing
Performance |
| Timeline |
| NAURA Technology |
| Bank of Beijing Co Ltd |
NAURA Technology and Bank of Beijing Co Ltd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Bank of Beijing Co Ltd
The main advantage of trading using opposite NAURA Technology and Bank of Beijing Co Ltd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Bank of Beijing Co Ltd 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 Bank of Beijing Co Ltd will offset losses from the drop in Bank of Beijing Co Ltd'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 |
| Bank of Beijing Co Ltd vs. Jiahe Foods Industry | Bank of Beijing Co Ltd vs. Guilin Seamild Foods | Bank of Beijing Co Ltd vs. Great Sun Foods Co | Bank of Beijing Co Ltd vs. Guangzhou Ruoyuchen Information |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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