Correlation Between Northking Information and Jiangsu Broadcasting
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By analyzing existing cross correlation between Northking Information Technology and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Northking Information and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Jiangsu Broadcasting.
Diversification Opportunities for Northking Information and Jiangsu Broadcasting
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Northking Information i.e., Northking Information and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Northking Information and Jiangsu Broadcasting
Assuming the 90 days trading horizon Northking Information is expected to generate 1.12 times less return on investment than Jiangsu Broadcasting. In addition to that, Northking Information is 1.72 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.01 of its total potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.02 per unit of volatility. If you would invest 309.00 in Jiangsu Broadcasting Cable on August 27, 2024 and sell it today you would earn a total of 36.00 from holding Jiangsu Broadcasting Cable or generate 11.65% 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. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Northking Information |
| Jiangsu Broadcasting |
Northking Information and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Jiangsu Broadcasting
The main advantage of trading using opposite Northking Information and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Northking Information vs. Cultural Investment Holdings | Northking Information vs. Gome Telecom Equipment | Northking Information vs. Bus Online Co | Northking Information vs. Holitech Technology Co |
| Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. China Construction Bank | Jiangsu Broadcasting vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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