Correlation Between Northking Information and Inner Mongolia
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By analyzing existing cross correlation between Northking Information Technology and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Northking Information and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Inner Mongolia.
Diversification Opportunities for Northking Information and Inner Mongolia
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Inner is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Northking Information i.e., Northking Information and Inner Mongolia go up and down completely randomly.
Pair Corralation between Northking Information and Inner Mongolia
Assuming the 90 days trading horizon Northking Information is expected to generate 1.14 times less return on investment than Inner Mongolia. But when comparing it to its historical volatility, Northking Information Technology is 1.16 times less risky than Inner Mongolia. It trades about 0.11 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 183.00 in Inner Mongolia BaoTou on September 5, 2024 and sell it today you would earn a total of 14.00 from holding Inner Mongolia BaoTou or generate 7.65% 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. Inner Mongolia BaoTou
Performance |
| Timeline |
| Northking Information |
| Inner Mongolia BaoTou |
Northking Information and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Inner Mongolia
The main advantage of trading using opposite Northking Information and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.The idea behind Northking Information Technology and Inner Mongolia BaoTou pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Inner Mongolia vs. Northking Information Technology | Inner Mongolia vs. ROPEOK Technology Group | Inner Mongolia vs. Guangzhou KingTeller Technology | Inner Mongolia vs. Xiamen Goldenhome 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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