Correlation Between Xinke Material and NAURA Technology
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By analyzing existing cross correlation between Xinke Material and NAURA Technology Group, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and NAURA Technology.
Diversification Opportunities for Xinke Material and NAURA Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinke and NAURA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and NAURA Technology go up and down completely randomly.
Pair Corralation between Xinke Material and NAURA Technology
Assuming the 90 days trading horizon Xinke Material is expected to generate 1.8 times more return on investment than NAURA Technology. However, Xinke Material is 1.8 times more volatile than NAURA Technology Group. It trades about 0.26 of its potential returns per unit of risk. NAURA Technology Group is currently generating about -0.44 per unit of risk. If you would invest 243.00 in Xinke Material on September 12, 2024 and sell it today you would earn a total of 57.00 from holding Xinke Material or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. NAURA Technology Group
Performance |
| Timeline |
| Xinke Material |
| NAURA Technology |
Xinke Material and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and NAURA Technology
The main advantage of trading using opposite Xinke Material and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.| Xinke Material vs. Zijin Mining Group | Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Baoshan Iron Steel | Xinke Material vs. Rongsheng Petrochemical Co |
| NAURA Technology vs. Kuang Chi Technologies | NAURA Technology vs. Fujian Newland Computer | NAURA Technology vs. Allwin Telecommunication Co | NAURA Technology vs. Humanwell Healthcare Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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