Correlation Between New China and Niutech Environment
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By analyzing existing cross correlation between New China Life and Niutech Environment Technology, you can compare the effects of market volatilities on New China 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 New China with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Niutech Environment.
Diversification Opportunities for New China and Niutech Environment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Niutech is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 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 New China i.e., New China and Niutech Environment go up and down completely randomly.
Pair Corralation between New China and Niutech Environment
Assuming the 90 days trading horizon New China Life is expected to generate 0.81 times more return on investment than Niutech Environment. However, New China Life is 1.23 times less risky than Niutech Environment. It trades about 0.07 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.0 per unit of risk. If you would invest 2,782 in New China Life on September 13, 2024 and sell it today you would earn a total of 2,386 from holding New China Life or generate 85.77% 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. Niutech Environment Technology
Performance |
| Timeline |
| New China Life |
| Niutech Environment |
New China and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Niutech Environment
The main advantage of trading using opposite New China and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. Jointo Energy Investment | New China vs. Tonghua Grape Wine | New China vs. Citic Guoan Wine | New China vs. Keda Clean Energy |
| Niutech Environment vs. New China Life | Niutech Environment vs. Ming Yang Smart | Niutech Environment vs. 159681 | Niutech Environment 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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