Correlation Between Chongqing Shunbo and Northking Information
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Northking Information Technology, you can compare the effects of market volatilities on Chongqing Shunbo and Northking Information 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 Chongqing Shunbo with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Northking Information.
Diversification Opportunities for Chongqing Shunbo and Northking Information
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Northking is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Chongqing Shunbo 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 Chongqing Shunbo Aluminum are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Chongqing Shunbo i.e., Chongqing Shunbo and Northking Information go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Northking Information
Assuming the 90 days trading horizon Chongqing Shunbo is expected to generate 1.2 times less return on investment than Northking Information. But when comparing it to its historical volatility, Chongqing Shunbo Aluminum is 1.64 times less risky than Northking Information. It trades about 0.08 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Northking Information Technology on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Northking Information Technology or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Northking Information Technolo
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Northking Information |
Chongqing Shunbo and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Northking Information
The main advantage of trading using opposite Chongqing Shunbo and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Chongqing Shunbo vs. Shanghai Jinfeng Wine | Chongqing Shunbo vs. Hubei Forbon Technology | Chongqing Shunbo vs. Guangzhou KingTeller Technology | Chongqing Shunbo vs. ROPEOK Technology Group |
| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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