Correlation Between Cinda Securities and Niutech Environment
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By analyzing existing cross correlation between Cinda Securities Co and Niutech Environment Technology, you can compare the effects of market volatilities on Cinda Securities and Niutech Environment 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 Cinda Securities with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Niutech Environment.
Diversification Opportunities for Cinda Securities and Niutech Environment
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Niutech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Cinda Securities i.e., Cinda Securities and Niutech Environment go up and down completely randomly.
Pair Corralation between Cinda Securities and Niutech Environment
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 1.14 times more return on investment than Niutech Environment. However, Cinda Securities is 1.14 times more volatile than Niutech Environment Technology. It trades about -0.08 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.11 per unit of risk. If you would invest 1,564 in Cinda Securities Co on August 29, 2024 and sell it today you would lose (97.00) from holding Cinda Securities Co or give up 6.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Niutech Environment Technology
Performance |
| Timeline |
| Cinda Securities |
| Niutech Environment |
Cinda Securities and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Niutech Environment
The main advantage of trading using opposite Cinda Securities and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| Niutech Environment vs. Dhc Software Co | Niutech Environment vs. China Railway Construction | Niutech Environment vs. Long Yuan Construction | Niutech Environment vs. Guangzhou KingTeller Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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