Correlation Between Northking Information and Shandong Hongchuang
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By analyzing existing cross correlation between Northking Information Technology and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Northking Information and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Shandong Hongchuang.
Diversification Opportunities for Northking Information and Shandong Hongchuang
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Shandong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Northking Information i.e., Northking Information and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Northking Information and Shandong Hongchuang
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.11 times more return on investment than Shandong Hongchuang. However, Northking Information is 1.11 times more volatile than Shandong Hongchuang Aluminum. It trades about 0.06 of its potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.04 per unit of risk. If you would invest 1,553 in Northking Information Technology on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Northking Information Technology or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Northking Information |
| Shandong Hongchuang |
Northking Information and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Shandong Hongchuang
The main advantage of trading using opposite Northking Information and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang'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 |
| Shandong Hongchuang vs. Dareway Software Co | Shandong Hongchuang vs. Anji Foodstuff Co | Shandong Hongchuang vs. Beijing Yanjing Brewery | Shandong Hongchuang vs. Yankershop Food 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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