Correlation Between Chengdu B-ray and Northern United
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By analyzing existing cross correlation between Chengdu B ray Media and Northern United Publishing, you can compare the effects of market volatilities on Chengdu B-ray and Northern United 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 Chengdu B-ray with a short position of Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Northern United.
Diversification Opportunities for Chengdu B-ray and Northern United
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Northern is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ and Chengdu B-ray 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 Chengdu B ray Media are associated (or correlated) with Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Chengdu B-ray i.e., Chengdu B-ray and Northern United go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Northern United
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Northern United. In addition to that, Chengdu B-ray is 1.44 times more volatile than Northern United Publishing. It trades about -0.01 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.01 per unit of volatility. If you would invest 657.00 in Northern United Publishing on November 6, 2024 and sell it today you would lose (5.00) from holding Northern United Publishing or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Northern United Publishing
Performance |
| Timeline |
| Chengdu B ray |
| Northern United Publ |
Chengdu B-ray and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Northern United
The main advantage of trading using opposite Chengdu B-ray and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Chengdu B-ray vs. Jointo Energy Investment | Chengdu B-ray vs. Xiamen Insight Investment | Chengdu B-ray vs. Shenzhen Centralcon Investment | Chengdu B-ray vs. Nantong Haixing Electronics |
| Northern United vs. Jinhe Biotechnology Co | Northern United vs. BTG Hotels Group | Northern United vs. Kailong High Technology | Northern United vs. Shenzhen Topway Video |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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