Correlation Between Northking Information and Shenzhen Transsion
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By analyzing existing cross correlation between Northking Information Technology and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Northking Information and Shenzhen Transsion 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 Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Shenzhen Transsion.
Diversification Opportunities for Northking Information and Shenzhen Transsion
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Northking and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Northking Information i.e., Northking Information and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Northking Information and Shenzhen Transsion
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 0.86 times more return on investment than Shenzhen Transsion. However, Northking Information Technology is 1.16 times less risky than Shenzhen Transsion. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.02 per unit of risk. If you would invest 1,590 in Northking Information Technology on December 2, 2024 and sell it today you would earn a total of 377.00 from holding Northking Information Technology or generate 23.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Northking Information |
| Shenzhen Transsion |
Northking Information and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Shenzhen Transsion
The main advantage of trading using opposite Northking Information and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Northking Information vs. Yankershop Food Co | Northking Information vs. Guilin Seamild Foods | Northking Information vs. Shanghai Ziyan Foods | Northking Information vs. Shandong Sanyuan Biotechnology |
| Shenzhen Transsion vs. Hongrun Construction Group | Shenzhen Transsion vs. Lutian Machinery Co | Shenzhen Transsion vs. Jiangsu Yanghe Brewery | Shenzhen Transsion vs. Citic Guoan Wine |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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