Correlation Between NARI Technology and Xiandai Investment
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By analyzing existing cross correlation between NARI Technology Co and Xiandai Investment Co, you can compare the effects of market volatilities on NARI Technology and Xiandai 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NARI Technology and Xiandai Investment.
Diversification Opportunities for NARI Technology and Xiandai Investment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NARI and Xiandai is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NARI Technology Co and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of NARI Technology i.e., NARI Technology and Xiandai Investment go up and down completely randomly.
Pair Corralation between NARI Technology and Xiandai Investment
Assuming the 90 days trading horizon NARI Technology is expected to generate 8.99 times less return on investment than Xiandai Investment. But when comparing it to its historical volatility, NARI Technology Co is 1.6 times less risky than Xiandai Investment. It trades about 0.04 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Xiandai Investment Co on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Xiandai Investment Co or generate 13.4% 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. Xiandai Investment Co
Performance |
| Timeline |
| NARI Technology |
| Xiandai Investment |
NARI Technology and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NARI Technology and Xiandai Investment
The main advantage of trading using opposite NARI Technology and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NARI Technology position performs unexpectedly, Xiandai 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| NARI Technology vs. Shanghai Yanpu Metal | NARI Technology vs. Fiberhome Telecommunication Technologies | NARI Technology vs. Vohringer Home Technology | NARI Technology vs. Qumei Furniture Group |
| Xiandai Investment vs. Tieling Newcity Investment | Xiandai Investment vs. Cangzhou Mingzhu Plastic | Xiandai Investment vs. Fuda Alloy Materials | Xiandai Investment vs. Shaanxi Energy Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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