Correlation Between China Fortune and Northking Information
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By analyzing existing cross correlation between China Fortune Land and Northking Information Technology, you can compare the effects of market volatilities on China Fortune 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 China Fortune with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Northking Information.
Diversification Opportunities for China Fortune and Northking Information
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Northking is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and China Fortune 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 China Fortune Land 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 China Fortune i.e., China Fortune and Northking Information go up and down completely randomly.
Pair Corralation between China Fortune and Northking Information
Assuming the 90 days trading horizon China Fortune is expected to generate 1.22 times less return on investment than Northking Information. In addition to that, China Fortune is 1.12 times more volatile than Northking Information Technology. It trades about 0.02 of its total potential returns per unit of risk. Northking Information Technology is currently generating about 0.03 per unit of volatility. If you would invest 1,342 in Northking Information Technology on September 3, 2024 and sell it today you would earn a total of 260.00 from holding Northking Information Technology or generate 19.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Northking Information Technolo
Performance |
| Timeline |
| China Fortune Land |
| Northking Information |
China Fortune and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Northking Information
The main advantage of trading using opposite China Fortune and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune 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.| China Fortune vs. Northking Information Technology | China Fortune vs. Guangzhou Ruoyuchen Information | China Fortune vs. Meinian Onehealth Healthcare | China Fortune vs. Longmaster Information Tech |
| Northking Information vs. Agricultural Bank of | Northking Information vs. China Construction Bank | Northking Information vs. Postal Savings Bank | Northking Information vs. Bank of Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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