Correlation Between Northking Information and Sinosteel Luonai
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By analyzing existing cross correlation between Northking Information Technology and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Northking Information and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Sinosteel Luonai.
Diversification Opportunities for Northking Information and Sinosteel Luonai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northking and Sinosteel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Northking Information i.e., Northking Information and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Northking Information and Sinosteel Luonai
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.13 times more return on investment than Sinosteel Luonai. However, Northking Information is 1.13 times more volatile than Sinosteel Luonai Materials. It trades about 0.17 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.17 per unit of risk. If you would invest 1,096 in Northking Information Technology on September 2, 2024 and sell it today you would earn a total of 506.00 from holding Northking Information Technology or generate 46.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Sinosteel Luonai Materials
Performance |
| Timeline |
| Northking Information |
| Sinosteel Luonai Mat |
Northking Information and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Sinosteel Luonai
The main advantage of trading using opposite Northking Information and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai'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 |
| Sinosteel Luonai vs. Nanjing OLO Home | Sinosteel Luonai vs. Linewell Software Co | Sinosteel Luonai vs. Zoy Home Furnishing | Sinosteel Luonai vs. Northking Information Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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