Correlation Between Broadex Technologies and Northking Information
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By analyzing existing cross correlation between Broadex Technologies Co and Northking Information Technology, you can compare the effects of market volatilities on Broadex Technologies 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 Broadex Technologies with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadex Technologies and Northking Information.
Diversification Opportunities for Broadex Technologies and Northking Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Broadex and Northking is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Broadex Technologies Co and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Broadex Technologies 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 Broadex Technologies Co 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 Broadex Technologies i.e., Broadex Technologies and Northking Information go up and down completely randomly.
Pair Corralation between Broadex Technologies and Northking Information
Assuming the 90 days trading horizon Broadex Technologies Co is expected to under-perform the Northking Information. In addition to that, Broadex Technologies is 1.17 times more volatile than Northking Information Technology. It trades about -0.09 of its total potential returns per unit of risk. Northking Information Technology is currently generating about -0.07 per unit of volatility. If you would invest 1,582 in Northking Information Technology on August 30, 2024 and sell it today you would lose (89.00) from holding Northking Information Technology or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadex Technologies Co vs. Northking Information Technolo
Performance |
| Timeline |
| Broadex Technologies |
| Northking Information |
Broadex Technologies and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadex Technologies and Northking Information
The main advantage of trading using opposite Broadex Technologies and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadex Technologies 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.| Broadex Technologies vs. China Petroleum Chemical | Broadex Technologies vs. PetroChina Co Ltd | Broadex Technologies vs. China State Construction | Broadex Technologies vs. China Railway Group |
| Northking Information vs. Agricultural Bank of | Northking Information vs. Industrial and Commercial | Northking Information vs. Bank of China | Northking Information vs. PetroChina Co Ltd |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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