Correlation Between Northern United and Shandong Publishing
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By analyzing existing cross correlation between Northern United Publishing and Shandong Publishing Media, you can compare the effects of market volatilities on Northern United and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Shandong Publishing.
Diversification Opportunities for Northern United and Shandong Publishing
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and Shandong is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Northern United i.e., Northern United and Shandong Publishing go up and down completely randomly.
Pair Corralation between Northern United and Shandong Publishing
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.78 times more return on investment than Shandong Publishing. However, Northern United is 1.78 times more volatile than Shandong Publishing Media. It trades about 0.14 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.0 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Shandong Publishing Media
Performance |
| Timeline |
| Northern United Publ |
| Shandong Publishing Media |
Northern United and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Shandong Publishing
The main advantage of trading using opposite Northern United and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing'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 |
| Shandong Publishing vs. Cambricon Technologies Corp | Shandong Publishing vs. Loongson Technology Corp | Shandong Publishing vs. Shenzhen Fortune Trend | Shandong Publishing vs. Chongqing Road Bridge |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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