Correlation Between New China and Rongcheer Industrial
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By analyzing existing cross correlation between New China Life and Rongcheer Industrial Technology, you can compare the effects of market volatilities on New China and Rongcheer Industrial 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 New China with a short position of Rongcheer Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Rongcheer Industrial.
Diversification Opportunities for New China and Rongcheer Industrial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Rongcheer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Rongcheer Industrial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongcheer Industrial and New China 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 New China Life are associated (or correlated) with Rongcheer Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongcheer Industrial has no effect on the direction of New China i.e., New China and Rongcheer Industrial go up and down completely randomly.
Pair Corralation between New China and Rongcheer Industrial
Assuming the 90 days trading horizon New China Life is expected to under-perform the Rongcheer Industrial. In addition to that, New China is 1.07 times more volatile than Rongcheer Industrial Technology. It trades about 0.0 of its total potential returns per unit of risk. Rongcheer Industrial Technology is currently generating about 0.04 per unit of volatility. If you would invest 5,330 in Rongcheer Industrial Technology on September 1, 2024 and sell it today you would earn a total of 106.00 from holding Rongcheer Industrial Technology or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Rongcheer Industrial Technolog
Performance |
| Timeline |
| New China Life |
| Rongcheer Industrial |
New China and Rongcheer Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Rongcheer Industrial
The main advantage of trading using opposite New China and Rongcheer Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Rongcheer Industrial 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 Rongcheer Industrial will offset losses from the drop in Rongcheer Industrial's long position.| New China vs. Southchip Semiconductor Technology | New China vs. Rising Nonferrous Metals | New China vs. Shandong Hongchuang Aluminum | New China vs. StarPower Semiconductor |
| Rongcheer Industrial vs. New China Life | Rongcheer Industrial vs. Ming Yang Smart | Rongcheer Industrial vs. 159681 | Rongcheer Industrial vs. 159005 |
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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