Correlation Between Northking Information and Bank of Shanghai
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By analyzing existing cross correlation between Northking Information Technology and Bank of Shanghai, you can compare the effects of market volatilities on Northking Information and Bank of Shanghai 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 Bank of Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Bank of Shanghai.
Diversification Opportunities for Northking Information and Bank of Shanghai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Bank is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Bank of Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Shanghai 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 Bank of Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Shanghai has no effect on the direction of Northking Information i.e., Northking Information and Bank of Shanghai go up and down completely randomly.
Pair Corralation between Northking Information and Bank of Shanghai
Assuming the 90 days trading horizon Northking Information is expected to generate 1.3 times less return on investment than Bank of Shanghai. In addition to that, Northking Information is 2.22 times more volatile than Bank of Shanghai. It trades about 0.04 of its total potential returns per unit of risk. Bank of Shanghai is currently generating about 0.11 per unit of volatility. If you would invest 588.00 in Bank of Shanghai on September 14, 2024 and sell it today you would earn a total of 276.00 from holding Bank of Shanghai or generate 46.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Northking Information Technolo vs. Bank of Shanghai
Performance |
| Timeline |
| Northking Information |
| Bank of Shanghai |
Northking Information and Bank of Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Bank of Shanghai
The main advantage of trading using opposite Northking Information and Bank of Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Bank of Shanghai 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 Bank of Shanghai will offset losses from the drop in Bank of Shanghai'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 |
| Bank of Shanghai vs. Xiamen Goldenhome Co | Bank of Shanghai vs. Der International Home | Bank of Shanghai vs. Gansu Yasheng Industrial | Bank of Shanghai vs. StarPower Semiconductor |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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