Correlation Between Northking Information and Shanghai Rongtai
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By analyzing existing cross correlation between Northking Information Technology and Shanghai Rongtai Health, you can compare the effects of market volatilities on Northking Information and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Shanghai Rongtai.
Diversification Opportunities for Northking Information and Shanghai Rongtai
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Northking Information i.e., Northking Information and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Northking Information and Shanghai Rongtai
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.16 times more return on investment than Shanghai Rongtai. However, Northking Information is 1.16 times more volatile than Shanghai Rongtai Health. It trades about 0.07 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.1 per unit of risk. If you would invest 1,209 in Northking Information Technology on September 3, 2024 and sell it today you would earn a total of 393.00 from holding Northking Information Technology or generate 32.51% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Northking Information |
| Shanghai Rongtai Health |
Northking Information and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Shanghai Rongtai
The main advantage of trading using opposite Northking Information and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai'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 |
| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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