Correlation Between Nsfocus Information and Dalian Thermal
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By analyzing existing cross correlation between Nsfocus Information Technology and Dalian Thermal Power, you can compare the effects of market volatilities on Nsfocus Information and Dalian Thermal 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 Nsfocus Information with a short position of Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nsfocus Information and Dalian Thermal.
Diversification Opportunities for Nsfocus Information and Dalian Thermal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nsfocus and Dalian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nsfocus Information Technology and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power and Nsfocus Information 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 Nsfocus Information Technology are associated (or correlated) with Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Nsfocus Information i.e., Nsfocus Information and Dalian Thermal go up and down completely randomly.
Pair Corralation between Nsfocus Information and Dalian Thermal
Assuming the 90 days trading horizon Nsfocus Information Technology is expected to under-perform the Dalian Thermal. But the stock apears to be less risky and, when comparing its historical volatility, Nsfocus Information Technology is 1.05 times less risky than Dalian Thermal. The stock trades about -0.02 of its potential returns per unit of risk. The Dalian Thermal Power is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 557.00 in Dalian Thermal Power on October 12, 2024 and sell it today you would earn a total of 59.00 from holding Dalian Thermal Power or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nsfocus Information Technology vs. Dalian Thermal Power
Performance |
| Timeline |
| Nsfocus Information |
| Dalian Thermal Power |
Nsfocus Information and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nsfocus Information and Dalian Thermal
The main advantage of trading using opposite Nsfocus Information and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nsfocus Information position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Nsfocus Information vs. Dareway Software Co | Nsfocus Information vs. Luyin Investment Group | Nsfocus Information vs. Cansino Biologics | Nsfocus Information vs. Hubei Geoway Investment |
| Dalian Thermal vs. Northking Information Technology | Dalian Thermal vs. Nsfocus Information Technology | Dalian Thermal vs. Hefei Metalforming Mach | Dalian Thermal vs. Jinxiandai Information Industry |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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