Correlation Between NURAN WIRELESS and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS and Kirin Holdings 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 Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on NURAN WIRELESS and Kirin Holdings 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 Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and Kirin Holdings.
Diversification Opportunities for NURAN WIRELESS and Kirin Holdings
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NURAN and Kirin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of NURAN WIRELESS i.e., NURAN WIRELESS and Kirin Holdings go up and down completely randomly.
Pair Corralation between NURAN WIRELESS and Kirin Holdings
Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to under-perform the Kirin Holdings. In addition to that, NURAN WIRELESS is 6.43 times more volatile than Kirin Holdings. It trades about -0.01 of its total potential returns per unit of risk. Kirin Holdings is currently generating about -0.01 per unit of volatility. If you would invest 1,441 in Kirin Holdings on September 14, 2024 and sell it today you would lose (141.00) from holding Kirin Holdings or give up 9.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NURAN WIRELESS INC vs. Kirin Holdings
Performance |
| Timeline |
| NURAN WIRELESS INC |
| Kirin Holdings |
NURAN WIRELESS and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NURAN WIRELESS and Kirin Holdings
The main advantage of trading using opposite NURAN WIRELESS and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS position performs unexpectedly, Kirin Holdings 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| NURAN WIRELESS vs. Cisco Systems | NURAN WIRELESS vs. Nokia | NURAN WIRELESS vs. Superior Plus Corp | NURAN WIRELESS vs. SIVERS SEMICONDUCTORS AB |
| Kirin Holdings vs. Strategic Education | Kirin Holdings vs. Xinhua Winshare Publishing | Kirin Holdings vs. Adtalem Global Education | Kirin Holdings vs. NURAN WIRELESS INC |
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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