Correlation Between Northern United and Taiji Computer
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By analyzing existing cross correlation between Northern United Publishing and Taiji Computer Corp, you can compare the effects of market volatilities on Northern United and Taiji Computer 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 Northern United with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Taiji Computer.
Diversification Opportunities for Northern United and Taiji Computer
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Northern and Taiji is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Northern United 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 Northern United Publishing are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Northern United i.e., Northern United and Taiji Computer go up and down completely randomly.
Pair Corralation between Northern United and Taiji Computer
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 0.92 times more return on investment than Taiji Computer. However, Northern United Publishing is 1.09 times less risky than Taiji Computer. It trades about 0.01 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.02 per unit of risk. If you would invest 699.00 in Northern United Publishing on October 28, 2024 and sell it today you would lose (54.00) from holding Northern United Publishing or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Taiji Computer Corp
Performance |
| Timeline |
| Northern United Publ |
| Taiji Computer Corp |
Northern United and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Taiji Computer
The main advantage of trading using opposite Northern United and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Northern United vs. Chengdu B ray Media | Northern United vs. Chinese Universe Publishing | Northern United vs. Jiangsu Phoenix Publishing | Northern United vs. COL Digital Publishing |
| Taiji Computer vs. North Copper Shanxi | Taiji Computer vs. Jiangsu Financial Leasing | Taiji Computer vs. Sunny Loan Top | Taiji Computer vs. Citic Guoan Wine |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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