Correlation Between Northern United and Xizi Clean
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By analyzing existing cross correlation between Northern United Publishing and Xizi Clean Energy, you can compare the effects of market volatilities on Northern United and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Xizi Clean.
Diversification Opportunities for Northern United and Xizi Clean
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and Xizi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Northern United i.e., Northern United and Xizi Clean go up and down completely randomly.
Pair Corralation between Northern United and Xizi Clean
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.19 times more return on investment than Xizi Clean. However, Northern United is 1.19 times more volatile than Xizi Clean Energy. It trades about 0.14 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.17 per unit of risk. If you would invest 646.00 in Northern United Publishing on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Northern United Publishing or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Xizi Clean Energy
Performance |
| Timeline |
| Northern United Publ |
| Xizi Clean Energy |
Northern United and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Xizi Clean
The main advantage of trading using opposite Northern United and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
| Xizi Clean vs. Miracll Chemicals Co | Xizi Clean vs. Ningbo Kangqiang Electronics | Xizi Clean vs. Ping An Insurance | Xizi Clean vs. Leyard Optoelectronic |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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