Correlation Between Northking Information and NBTM New
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By analyzing existing cross correlation between Northking Information Technology and NBTM New Materials, you can compare the effects of market volatilities on Northking Information and NBTM New 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 NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and NBTM New.
Diversification Opportunities for Northking Information and NBTM New
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and NBTM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials 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 NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Northking Information i.e., Northking Information and NBTM New go up and down completely randomly.
Pair Corralation between Northking Information and NBTM New
Assuming the 90 days trading horizon Northking Information is expected to generate 3.28 times less return on investment than NBTM New. But when comparing it to its historical volatility, Northking Information Technology is 1.09 times less risky than NBTM New. It trades about 0.02 of its potential returns per unit of risk. NBTM New Materials is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 897.00 in NBTM New Materials on September 28, 2024 and sell it today you would earn a total of 809.00 from holding NBTM New Materials or generate 90.19% 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. NBTM New Materials
Performance |
| Timeline |
| Northking Information |
| NBTM New Materials |
Northking Information and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and NBTM New
The main advantage of trading using opposite Northking Information and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Northking Information vs. Kweichow Moutai Co | Northking Information vs. Shenzhen Mindray Bio Medical | Northking Information vs. Jiangsu Pacific Quartz | Northking Information vs. G bits Network Technology |
| NBTM New vs. Tianshui Huatian Technology | NBTM New vs. Zhejiang Construction Investment | NBTM New vs. Chengdu Xingrong Investment | NBTM New vs. Northking Information Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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