Correlation Between Shandong Mining and Niutech Environment
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By analyzing existing cross correlation between Shandong Mining Machinery and Niutech Environment Technology, you can compare the effects of market volatilities on Shandong Mining and Niutech Environment 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 Shandong Mining with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Niutech Environment.
Diversification Opportunities for Shandong Mining and Niutech Environment
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Niutech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment and Shandong Mining 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 Shandong Mining Machinery are associated (or correlated) with Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Shandong Mining i.e., Shandong Mining and Niutech Environment go up and down completely randomly.
Pair Corralation between Shandong Mining and Niutech Environment
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.89 times more return on investment than Niutech Environment. However, Shandong Mining Machinery is 1.13 times less risky than Niutech Environment. It trades about 0.03 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.0 per unit of risk. If you would invest 236.00 in Shandong Mining Machinery on August 30, 2024 and sell it today you would earn a total of 61.00 from holding Shandong Mining Machinery or generate 25.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Niutech Environment Technology
Performance |
| Timeline |
| Shandong Mining Machinery |
| Niutech Environment |
Shandong Mining and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Niutech Environment
The main advantage of trading using opposite Shandong Mining and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Shandong Mining vs. China Life Insurance | Shandong Mining vs. Cinda Securities Co | Shandong Mining vs. Piotech Inc A | Shandong Mining vs. Dongxing Sec Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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