Correlation Between Northking Information and Dongxing Sec
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By analyzing existing cross correlation between Northking Information Technology and Dongxing Sec Co, you can compare the effects of market volatilities on Northking Information and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Dongxing Sec.
Diversification Opportunities for Northking Information and Dongxing Sec
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Dongxing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Northking Information i.e., Northking Information and Dongxing Sec go up and down completely randomly.
Pair Corralation between Northking Information and Dongxing Sec
Assuming the 90 days trading horizon Northking Information is expected to generate 1.52 times less return on investment than Dongxing Sec. In addition to that, Northking Information is 1.46 times more volatile than Dongxing Sec Co. It trades about 0.02 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.04 per unit of volatility. If you would invest 823.00 in Dongxing Sec Co on August 30, 2024 and sell it today you would earn a total of 301.00 from holding Dongxing Sec Co or generate 36.57% 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. Dongxing Sec Co
Performance |
| Timeline |
| Northking Information |
| Dongxing Sec |
Northking Information and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Dongxing Sec
The main advantage of trading using opposite Northking Information and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Northking Information vs. China State Construction | Northking Information vs. Huafa Industrial Co | Northking Information vs. China International Capital | Northking Information vs. Kweichow Moutai Co |
| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD Co Ltd |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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