Correlation Between Northking Information and Changchun
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By analyzing existing cross correlation between Northking Information Technology and Changchun UP Optotech, you can compare the effects of market volatilities on Northking Information and Changchun 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 Northking Information with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Changchun.
Diversification Opportunities for Northking Information and Changchun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Changchun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Northking Information 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 Northking Information Technology are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Northking Information i.e., Northking Information and Changchun go up and down completely randomly.
Pair Corralation between Northking Information and Changchun
Assuming the 90 days trading horizon Northking Information is expected to generate 1.36 times less return on investment than Changchun. But when comparing it to its historical volatility, Northking Information Technology is 1.12 times less risky than Changchun. It trades about 0.04 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,287 in Changchun UP Optotech on September 14, 2024 and sell it today you would earn a total of 1,007 from holding Changchun UP Optotech or generate 30.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Changchun UP Optotech
Performance |
| Timeline |
| Northking Information |
| Changchun UP Optotech |
Northking Information and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Changchun
The main advantage of trading using opposite Northking Information and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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