Correlation Between Northern United and Hubeiyichang Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Northern United Publishing and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Northern United and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Hubeiyichang Transportation.
Diversification Opportunities for Northern United and Hubeiyichang Transportation
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northern and Hubeiyichang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Northern United i.e., Northern United and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Northern United and Hubeiyichang Transportation
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.4 times more return on investment than Hubeiyichang Transportation. However, Northern United is 1.4 times more volatile than Hubeiyichang Transportation Group. It trades about 0.02 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 649.00 in Northern United Publishing on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Northern United Publishing or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Northern United Publ |
| Hubeiyichang Transportation |
Northern United and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Hubeiyichang Transportation
The main advantage of trading using opposite Northern United and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Northern United vs. Shandong Hongchuang Aluminum | Northern United vs. Luyin Investment Group | Northern United vs. Hefei Metalforming Mach | Northern United vs. Sino Platinum Metals Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |