Correlation Between NAURA Technology and Chahua Modern
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By analyzing existing cross correlation between NAURA Technology Group and Chahua Modern Housewares, you can compare the effects of market volatilities on NAURA Technology and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Chahua Modern.
Diversification Opportunities for NAURA Technology and Chahua Modern
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NAURA and Chahua is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of NAURA Technology i.e., NAURA Technology and Chahua Modern go up and down completely randomly.
Pair Corralation between NAURA Technology and Chahua Modern
Assuming the 90 days trading horizon NAURA Technology is expected to generate 1.66 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, NAURA Technology Group is 1.3 times less risky than Chahua Modern. It trades about 0.06 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 810.00 in Chahua Modern Housewares on August 28, 2024 and sell it today you would earn a total of 1,400 from holding Chahua Modern Housewares or generate 172.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAURA Technology Group vs. Chahua Modern Housewares
Performance |
| Timeline |
| NAURA Technology |
| Chahua Modern Housewares |
NAURA Technology and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAURA Technology and Chahua Modern
The main advantage of trading using opposite NAURA Technology and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| NAURA Technology vs. Zijin Mining Group | NAURA Technology vs. Chenzhou Jingui Silver | NAURA Technology vs. Huaibei Mining Holdings | NAURA Technology vs. Guocheng Mining Co |
| Chahua Modern vs. Liuzhou Chemical Industry | Chahua Modern vs. Guangzhou Jointas Chemical | Chahua Modern vs. Lianhe Chemical Technology | Chahua Modern vs. Shenzhen Bioeasy Biotechnology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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