Correlation Between Northking Information and Saurer Intelligent
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By analyzing existing cross correlation between Northking Information Technology and Saurer Intelligent Technology, you can compare the effects of market volatilities on Northking Information and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Saurer Intelligent.
Diversification Opportunities for Northking Information and Saurer Intelligent
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Saurer is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Northking Information i.e., Northking Information and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Northking Information and Saurer Intelligent
Assuming the 90 days trading horizon Northking Information is expected to generate 1.84 times less return on investment than Saurer Intelligent. But when comparing it to its historical volatility, Northking Information Technology is 1.26 times less risky than Saurer Intelligent. It trades about 0.13 of its potential returns per unit of risk. Saurer Intelligent Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Saurer Intelligent Technology on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Saurer Intelligent Technology or generate 15.23% 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. Saurer Intelligent Technology
Performance |
| Timeline |
| Northking Information |
| Saurer Intelligent |
Northking Information and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Saurer Intelligent
The main advantage of trading using opposite Northking Information and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Northking Information vs. Agricultural Bank of | Northking Information vs. China Construction Bank | Northking Information vs. Postal Savings Bank | Northking Information vs. Bank of Communications |
| Saurer Intelligent vs. Cultural Investment Holdings | Saurer Intelligent vs. Gome Telecom Equipment | Saurer Intelligent vs. Bus Online Co | Saurer Intelligent vs. Holitech Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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