Correlation Between NARI Technology and Hunan Investment
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By analyzing existing cross correlation between NARI Technology Co and Hunan Investment Group, you can compare the effects of market volatilities on NARI Technology and Hunan Investment 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 NARI Technology with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NARI Technology and Hunan Investment.
Diversification Opportunities for NARI Technology and Hunan Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NARI and Hunan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NARI Technology Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and NARI Technology 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 NARI Technology Co are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of NARI Technology i.e., NARI Technology and Hunan Investment go up and down completely randomly.
Pair Corralation between NARI Technology and Hunan Investment
Assuming the 90 days trading horizon NARI Technology is expected to generate 49.44 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, NARI Technology Co is 1.88 times less risky than Hunan Investment. It trades about 0.01 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Hunan Investment Group on September 2, 2024 and sell it today you would earn a total of 163.00 from holding Hunan Investment Group or generate 40.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NARI Technology Co vs. Hunan Investment Group
Performance |
| Timeline |
| NARI Technology |
| Hunan Investment |
NARI Technology and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NARI Technology and Hunan Investment
The main advantage of trading using opposite NARI Technology and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NARI Technology position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| NARI Technology vs. Weichai Heavy Machinery | NARI Technology vs. Hunan Tyen Machinery | NARI Technology vs. Cicc Fund Management | NARI Technology vs. Hongrun Construction Group |
| Hunan Investment vs. Unisplendour Corp | Hunan Investment vs. Longjian Road Bridge | Hunan Investment vs. Xinjiang Beixin RoadBridge | Hunan Investment vs. Shandong Hi Speed RoadBridge |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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