Correlation Between Northking Information and Chongqing Shunbo
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By analyzing existing cross correlation between Northking Information Technology and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Northking Information and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Chongqing Shunbo.
Diversification Opportunities for Northking Information and Chongqing Shunbo
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Chongqing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Northking Information i.e., Northking Information and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Northking Information and Chongqing Shunbo
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.24 times more return on investment than Chongqing Shunbo. However, Northking Information is 1.24 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.03 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.03 per unit of risk. If you would invest 1,342 in Northking Information Technology on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Northking Information Technology or generate 19.37% 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. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Northking Information |
| Chongqing Shunbo Aluminum |
Northking Information and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Chongqing Shunbo
The main advantage of trading using opposite Northking Information and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Northking Information vs. Agricultural Bank of | Northking Information vs. China Construction Bank | Northking Information vs. Postal Savings Bank | Northking Information vs. Bank of Communications |
| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Rongsheng Petrochemical Co | Chongqing Shunbo vs. Hoshine Silicon Ind |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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