Correlation Between Northking Information and Shenzhen Longsys
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By analyzing existing cross correlation between Northking Information Technology and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Northking Information and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Shenzhen Longsys.
Diversification Opportunities for Northking Information and Shenzhen Longsys
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Northking Information i.e., Northking Information and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Northking Information and Shenzhen Longsys
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 0.81 times more return on investment than Shenzhen Longsys. However, Northking Information Technology is 1.24 times less risky than Shenzhen Longsys. It trades about 0.14 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about 0.09 per unit of risk. If you would invest 1,080 in Northking Information Technology on August 29, 2024 and sell it today you would earn a total of 342.00 from holding Northking Information Technology or generate 31.67% 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. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Northking Information |
| Shenzhen Longsys Ele |
Northking Information and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Shenzhen Longsys
The main advantage of trading using opposite Northking Information and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' long position.| Northking Information vs. China State Construction | Northking Information vs. Huafa Industrial Co | Northking Information vs. China International Capital | Northking Information vs. Kweichow Moutai Co |
| Shenzhen Longsys vs. Beijing Wandong Medical | Shenzhen Longsys vs. Cowealth Medical China | Shenzhen Longsys vs. Winner Medical Co | Shenzhen Longsys vs. Jiangsu Jinling Sports |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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