Correlation Between Guangxi Wuzhou and Northking Information
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Northking Information Technology, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Northking Information.
Diversification Opportunities for Guangxi Wuzhou and Northking Information
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Northking is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Northking Information go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Northking Information
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.39 times more return on investment than Northking Information. However, Guangxi Wuzhou is 1.39 times more volatile than Northking Information Technology. It trades about 0.1 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.02 per unit of risk. If you would invest 390.00 in Guangxi Wuzhou Communications on October 18, 2024 and sell it today you would earn a total of 56.00 from holding Guangxi Wuzhou Communications or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Northking Information Technolo
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Northking Information |
Guangxi Wuzhou and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Northking Information
The main advantage of trading using opposite Guangxi Wuzhou and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Xinjiang Beixin RoadBridge | Guangxi Wuzhou vs. Shanghai Broadband Technology | Guangxi Wuzhou vs. Hunan TV Broadcast | Guangxi Wuzhou vs. Guizhou BroadcastingTV Info |
| Northking Information vs. Shaanxi Broadcast TV | Northking Information vs. Guizhou BroadcastingTV Info | Northking Information vs. Porton Fine Chemicals | Northking Information vs. Nanxing Furniture Machinery |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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