Correlation Between East Money and Northking Information
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By analyzing existing cross correlation between East Money Information and Northking Information Technology, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Northking Information.
Diversification Opportunities for East Money and Northking Information
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between East and Northking is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and East Money 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 East Money Information 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 East Money i.e., East Money and Northking Information go up and down completely randomly.
Pair Corralation between East Money and Northking Information
Assuming the 90 days trading horizon East Money Information is expected to generate 1.02 times more return on investment than Northking Information. However, East Money is 1.02 times more volatile than Northking Information Technology. It trades about 0.02 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.01 per unit of risk. If you would invest 1,895 in East Money Information on October 14, 2024 and sell it today you would earn a total of 293.00 from holding East Money Information or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Northking Information Technolo
Performance |
| Timeline |
| East Money Information |
| Northking Information |
East Money and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Northking Information
The main advantage of trading using opposite East Money and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. Semiconductor Manufacturing Intl | East Money vs. Sungrow Power Supply | East Money vs. Anhui Conch Cement | East Money vs. Shenzhen New Nanshan |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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