Correlation Between Shenzhen Inovance and NAURA Technology
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By analyzing existing cross correlation between Shenzhen Inovance Tech and NAURA Technology Group, you can compare the effects of market volatilities on Shenzhen Inovance and NAURA Technology 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 Shenzhen Inovance with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and NAURA Technology.
Diversification Opportunities for Shenzhen Inovance and NAURA Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and NAURA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance Tech and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Shenzhen Inovance 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 Shenzhen Inovance Tech are associated (or correlated) with NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Shenzhen Inovance i.e., Shenzhen Inovance and NAURA Technology go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and NAURA Technology
Assuming the 90 days trading horizon Shenzhen Inovance Tech is expected to under-perform the NAURA Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Inovance Tech is 1.1 times less risky than NAURA Technology. The stock trades about 0.0 of its potential returns per unit of risk. The NAURA Technology Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,864 in NAURA Technology Group on September 29, 2024 and sell it today you would earn a total of 16,366 from holding NAURA Technology Group or generate 65.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. NAURA Technology Group
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| NAURA Technology |
Shenzhen Inovance and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and NAURA Technology
The main advantage of trading using opposite Shenzhen Inovance and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Shenzhen Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network Technology |
| NAURA Technology vs. Hainan Haiqi Transportation | NAURA Technology vs. Lander Sports Development | NAURA Technology vs. Weihai Honglin Electronic | NAURA Technology vs. Epoxy Base Electronic |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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