Correlation Between Northern United and Beijing YanDong
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By analyzing existing cross correlation between Northern United Publishing and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Northern United and Beijing YanDong 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 Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Beijing YanDong.
Diversification Opportunities for Northern United and Beijing YanDong
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Northern and Beijing is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Northern United i.e., Northern United and Beijing YanDong go up and down completely randomly.
Pair Corralation between Northern United and Beijing YanDong
Assuming the 90 days trading horizon Northern United Publishing is expected to under-perform the Beijing YanDong. But the stock apears to be less risky and, when comparing its historical volatility, Northern United Publishing is 1.07 times less risky than Beijing YanDong. The stock trades about -0.33 of its potential returns per unit of risk. The Beijing YanDong MicroElectronic is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,142 in Beijing YanDong MicroElectronic on October 17, 2024 and sell it today you would lose (137.00) from holding Beijing YanDong MicroElectronic or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Northern United Publ |
| Beijing YanDong Micr |
Northern United and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Beijing YanDong
The main advantage of trading using opposite Northern United and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Beijing YanDong 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 Beijing YanDong will offset losses from the drop in Beijing YanDong's long position.| Northern United vs. JuneYao Dairy Co | Northern United vs. Youngy Health Co | Northern United vs. Humanwell Healthcare Group | Northern United vs. Qingdao Foods Co |
| Beijing YanDong vs. Tangel Publishing | Beijing YanDong vs. Dr Peng Telecom | Beijing YanDong vs. Tongyu Communication | Beijing YanDong vs. Northern United Publishing |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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