Correlation Between Northking Information and Dongguan Aohai
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By analyzing existing cross correlation between Northking Information Technology and Dongguan Aohai Technology, you can compare the effects of market volatilities on Northking Information and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Dongguan Aohai.
Diversification Opportunities for Northking Information and Dongguan Aohai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Dongguan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Northking Information i.e., Northking Information and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Northking Information and Dongguan Aohai
Assuming the 90 days trading horizon Northking Information Technology is expected to under-perform the Dongguan Aohai. But the stock apears to be less risky and, when comparing its historical volatility, Northking Information Technology is 1.74 times less risky than Dongguan Aohai. The stock trades about -0.07 of its potential returns per unit of risk. The Dongguan Aohai Technology is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,178 in Dongguan Aohai Technology on September 12, 2024 and sell it today you would earn a total of 899.00 from holding Dongguan Aohai Technology or generate 28.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Northking Information Technolo vs. Dongguan Aohai Technology
Performance |
| Timeline |
| Northking Information |
| Dongguan Aohai Technology |
Northking Information and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Dongguan Aohai
The main advantage of trading using opposite Northking Information and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| Northking Information vs. Gansu Jiu Steel | Northking Information vs. Shandong Mining Machinery | Northking Information vs. Aba Chemicals Corp | Northking Information vs. BlueFocus Communication Group |
| Dongguan Aohai vs. Agricultural Bank of | Dongguan Aohai vs. Industrial and Commercial | Dongguan Aohai vs. Bank of China | Dongguan Aohai vs. PetroChina Co Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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