Correlation Between Northern United and Sinosteel Luonai
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By analyzing existing cross correlation between Northern United Publishing and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Northern United and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Sinosteel Luonai.
Diversification Opportunities for Northern United and Sinosteel Luonai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northern and Sinosteel is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Northern United i.e., Northern United and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Northern United and Sinosteel Luonai
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.02 times more return on investment than Sinosteel Luonai. However, Northern United is 1.02 times more volatile than Sinosteel Luonai Materials. It trades about 0.18 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.06 per unit of risk. If you would invest 640.00 in Northern United Publishing on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Northern United Publishing or generate 9.69% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Northern United Publ |
| Sinosteel Luonai Mat |
Northern United and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Sinosteel Luonai
The main advantage of trading using opposite Northern United and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Northern United vs. BYD Co Ltd | Northern United vs. Agricultural Bank of | Northern United vs. Industrial and Commercial | Northern United vs. China State Construction |
| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Rongsheng Petrochemical 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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