Correlation Between NURAN WIRELESS and China Petroleum
Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS and China Petroleum at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NURAN WIRELESS and China Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NURAN WIRELESS INC and China Petroleum Chemical, you can compare the effects of market volatilities on NURAN WIRELESS and China Petroleum 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 NURAN WIRELESS with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and China Petroleum.
Diversification Opportunities for NURAN WIRELESS and China Petroleum
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between NURAN and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and NURAN WIRELESS 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 NURAN WIRELESS INC are associated (or correlated) with China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of NURAN WIRELESS i.e., NURAN WIRELESS and China Petroleum go up and down completely randomly.
Pair Corralation between NURAN WIRELESS and China Petroleum
Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to under-perform the China Petroleum. In addition to that, NURAN WIRELESS is 2.07 times more volatile than China Petroleum Chemical. It trades about -0.2 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 51.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 1.00 from holding China Petroleum Chemical or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NURAN WIRELESS INC vs. China Petroleum Chemical
Performance |
| Timeline |
| NURAN WIRELESS INC |
| China Petroleum Chemical |
NURAN WIRELESS and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NURAN WIRELESS and China Petroleum
The main advantage of trading using opposite NURAN WIRELESS and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| NURAN WIRELESS vs. Cisco Systems | NURAN WIRELESS vs. Nokia | NURAN WIRELESS vs. Hewlett Packard Enterprise | NURAN WIRELESS vs. Superior Plus Corp |
| China Petroleum vs. CHEMICAL INDUSTRIES | China Petroleum vs. DOCDATA | China Petroleum vs. SHIN ETSU CHEMICAL | China Petroleum vs. PUBLIC STORAGE PRFO |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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