Correlation Between Northking Information and Jiangxi Lianchuang
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By analyzing existing cross correlation between Northking Information Technology and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Northking Information and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Jiangxi Lianchuang.
Diversification Opportunities for Northking Information and Jiangxi Lianchuang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Jiangxi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Northking Information i.e., Northking Information and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Northking Information and Jiangxi Lianchuang
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 0.77 times more return on investment than Jiangxi Lianchuang. However, Northking Information Technology is 1.31 times less risky than Jiangxi Lianchuang. It trades about 0.09 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.05 per unit of risk. If you would invest 1,442 in Northking Information Technology on September 19, 2024 and sell it today you would earn a total of 79.00 from holding Northking Information Technology or generate 5.48% 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. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Northking Information |
| Jiangxi Lianchuang Opto |
Northking Information and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Jiangxi Lianchuang
The main advantage of trading using opposite Northking Information and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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