Correlation Between Northern United and Xinjiang Communications
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By analyzing existing cross correlation between Northern United Publishing and Xinjiang Communications Construction, you can compare the effects of market volatilities on Northern United and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Xinjiang Communications.
Diversification Opportunities for Northern United and Xinjiang Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northern and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Northern United i.e., Northern United and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Northern United and Xinjiang Communications
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 0.81 times more return on investment than Xinjiang Communications. However, Northern United Publishing is 1.23 times less risky than Xinjiang Communications. It trades about 0.25 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.16 per unit of risk. If you would invest 627.00 in Northern United Publishing on September 5, 2024 and sell it today you would earn a total of 80.00 from holding Northern United Publishing or generate 12.76% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Northern United Publ |
| Xinjiang Communications |
Northern United and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Xinjiang Communications
The main advantage of trading using opposite Northern United and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Northern United vs. Double Medical Technology | Northern United vs. Markor International Home | Northern United vs. Der International Home | Northern United vs. Kontour Medical Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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