Correlation Between Shanghai Rural and Northking Information
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By analyzing existing cross correlation between Shanghai Rural Commercial and Northking Information Technology, you can compare the effects of market volatilities on Shanghai Rural and Northking 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 Shanghai Rural with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rural and Northking Information.
Diversification Opportunities for Shanghai Rural and Northking Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Northking is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rural Commercial and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Shanghai Rural 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 Shanghai Rural Commercial are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Shanghai Rural i.e., Shanghai Rural and Northking Information go up and down completely randomly.
Pair Corralation between Shanghai Rural and Northking Information
Assuming the 90 days trading horizon Shanghai Rural Commercial is expected to generate 0.46 times more return on investment than Northking Information. However, Shanghai Rural Commercial is 2.18 times less risky than Northking Information. It trades about 0.08 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.03 per unit of risk. If you would invest 494.00 in Shanghai Rural Commercial on September 14, 2024 and sell it today you would earn a total of 329.00 from holding Shanghai Rural Commercial or generate 66.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rural Commercial vs. Northking Information Technolo
Performance |
| Timeline |
| Shanghai Rural Commercial |
| Northking Information |
Shanghai Rural and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rural and Northking Information
The main advantage of trading using opposite Shanghai Rural and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rural position performs unexpectedly, Northking 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 Northking Information will offset losses from the drop in Northking Information's long position.| Shanghai Rural vs. Northking Information Technology | Shanghai Rural vs. Hainan Airlines Co | Shanghai Rural vs. Focus Media Information | Shanghai Rural vs. Yingde Greatchem Chemicals |
| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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