Correlation Between China Railway and Nsfocus Information
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By analyzing existing cross correlation between China Railway Group and Nsfocus Information Technology, you can compare the effects of market volatilities on China Railway and Nsfocus Information 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 China Railway with a short position of Nsfocus Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Nsfocus Information.
Diversification Opportunities for China Railway and Nsfocus Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Nsfocus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Nsfocus Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nsfocus Information and China Railway 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 China Railway Group are associated (or correlated) with Nsfocus Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nsfocus Information has no effect on the direction of China Railway i.e., China Railway and Nsfocus Information go up and down completely randomly.
Pair Corralation between China Railway and Nsfocus Information
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Nsfocus Information. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.93 times less risky than Nsfocus Information. The stock trades about -0.02 of its potential returns per unit of risk. The Nsfocus Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Nsfocus Information Technology on October 13, 2024 and sell it today you would earn a total of 91.00 from holding Nsfocus Information Technology or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Nsfocus Information Technology
Performance |
| Timeline |
| China Railway Group |
| Nsfocus Information |
China Railway and Nsfocus Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Nsfocus Information
The main advantage of trading using opposite China Railway and Nsfocus Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Nsfocus Information 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 Nsfocus Information will offset losses from the drop in Nsfocus Information's long position.| China Railway vs. Goodwill E Health | China Railway vs. Kunwu Jiuding Investment | China Railway vs. Shenzhen Centralcon Investment | China Railway vs. Jiangsu Yueda Investment |
| Nsfocus Information vs. Dareway Software Co | Nsfocus Information vs. Luyin Investment Group | Nsfocus Information vs. Cansino Biologics | Nsfocus Information vs. Hubei Geoway Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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