Correlation Between Hunan Tyen and NARI Technology
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By analyzing existing cross correlation between Hunan Tyen Machinery and NARI Technology Co, you can compare the effects of market volatilities on Hunan Tyen and NARI 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 Hunan Tyen with a short position of NARI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and NARI Technology.
Diversification Opportunities for Hunan Tyen and NARI Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and NARI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and NARI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NARI Technology and Hunan Tyen 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 Hunan Tyen Machinery are associated (or correlated) with NARI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NARI Technology has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and NARI Technology go up and down completely randomly.
Pair Corralation between Hunan Tyen and NARI Technology
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to under-perform the NARI Technology. In addition to that, Hunan Tyen is 1.73 times more volatile than NARI Technology Co. It trades about -0.15 of its total potential returns per unit of risk. NARI Technology Co is currently generating about -0.21 per unit of volatility. If you would invest 2,654 in NARI Technology Co on September 2, 2024 and sell it today you would lose (186.00) from holding NARI Technology Co or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. NARI Technology Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| NARI Technology |
Hunan Tyen and NARI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and NARI Technology
The main advantage of trading using opposite Hunan Tyen and NARI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, NARI 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 NARI Technology will offset losses from the drop in NARI Technology's long position.| Hunan Tyen vs. BeiGene | Hunan Tyen vs. G bits Network Technology | Hunan Tyen vs. China Mobile Limited | Hunan Tyen vs. Jiangsu Bioperfectus Technologies |
| NARI Technology vs. Weichai Heavy Machinery | NARI Technology vs. Hunan Tyen Machinery | NARI Technology vs. Cicc Fund Management | NARI Technology vs. Hongrun Construction 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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