Correlation Between Jiangxi Hengda and NAURA Technology
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and NAURA Technology Group, you can compare the effects of market volatilities on Jiangxi Hengda and NAURA Technology 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 Jiangxi Hengda with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and NAURA Technology.
Diversification Opportunities for Jiangxi Hengda and NAURA Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and NAURA is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and NAURA Technology go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and NAURA Technology
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.52 times more return on investment than NAURA Technology. However, Jiangxi Hengda is 1.52 times more volatile than NAURA Technology Group. It trades about 0.22 of its potential returns per unit of risk. NAURA Technology Group is currently generating about -0.39 per unit of risk. If you would invest 545.00 in Jiangxi Hengda Hi Tech on September 13, 2024 and sell it today you would earn a total of 84.00 from holding Jiangxi Hengda Hi Tech or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. NAURA Technology Group
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| NAURA Technology |
Jiangxi Hengda and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and NAURA Technology
The main advantage of trading using opposite Jiangxi Hengda and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
| NAURA Technology vs. Agricultural Bank of | NAURA Technology vs. Industrial and Commercial | NAURA Technology vs. Bank of China | NAURA Technology vs. China Construction Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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