Correlation Between Northking Information and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Northking Information Technology and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Northking Information and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Fiberhome Telecommunicatio.
Diversification Opportunities for Northking Information and Fiberhome Telecommunicatio
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Fiberhome is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Northking Information i.e., Northking Information and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Northking Information and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.53 times more return on investment than Fiberhome Telecommunicatio. However, Northking Information is 1.53 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.04 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.06 per unit of risk. If you would invest 1,875 in Northking Information Technology on January 26, 2025 and sell it today you would earn a total of 42.00 from holding Northking Information Technology or generate 2.24% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Northking Information |
| Fiberhome Telecommunicatio |
Northking Information and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Fiberhome Telecommunicatio
The main advantage of trading using opposite Northking Information and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Northking Information vs. Servyou Software Group | Northking Information vs. China National Software | Northking Information vs. Glodon Software Co | Northking Information vs. Thunder Software 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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