Correlation Between Huaibei Mining and NAURA Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huaibei Mining Holdings and NAURA Technology Group, you can compare the effects of market volatilities on Huaibei Mining and NAURA 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 Huaibei Mining with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and NAURA Technology.
Diversification Opportunities for Huaibei Mining and NAURA Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaibei and NAURA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Huaibei Mining 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 Huaibei Mining Holdings are associated (or correlated) with NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and NAURA Technology go up and down completely randomly.
Pair Corralation between Huaibei Mining and NAURA Technology
Assuming the 90 days trading horizon Huaibei Mining is expected to generate 1.57 times less return on investment than NAURA Technology. But when comparing it to its historical volatility, Huaibei Mining Holdings is 1.11 times less risky than NAURA Technology. It trades about 0.03 of its potential returns per unit of risk. NAURA Technology Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 30,069 in NAURA Technology Group on August 31, 2024 and sell it today you would earn a total of 11,499 from holding NAURA Technology Group or generate 38.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. NAURA Technology Group
Performance |
| Timeline |
| Huaibei Mining Holdings |
| NAURA Technology |
Huaibei Mining and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and NAURA Technology
The main advantage of trading using opposite Huaibei Mining and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, NAURA 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Huaibei Mining vs. Chongqing Road Bridge | Huaibei Mining vs. Heilongjiang Transport Development | Huaibei Mining vs. Beijing Kaiwen Education | Huaibei Mining vs. Fujian Longzhou Transportation |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |