Correlation Between Northern United and Sinocelltech Group
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By analyzing existing cross correlation between Northern United Publishing and Sinocelltech Group, you can compare the effects of market volatilities on Northern United and Sinocelltech Group 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 Sinocelltech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Sinocelltech Group.
Diversification Opportunities for Northern United and Sinocelltech Group
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Northern and Sinocelltech is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Northern United i.e., Northern United and Sinocelltech Group go up and down completely randomly.
Pair Corralation between Northern United and Sinocelltech Group
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.21 times more return on investment than Sinocelltech Group. However, Northern United is 1.21 times more volatile than Sinocelltech Group. It trades about 0.1 of its potential returns per unit of risk. Sinocelltech Group is currently generating about 0.05 per unit of risk. If you would invest 629.00 in Northern United Publishing on November 3, 2024 and sell it today you would earn a total of 23.00 from holding Northern United Publishing or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Sinocelltech Group
Performance |
| Timeline |
| Northern United Publ |
| Sinocelltech Group |
Northern United and Sinocelltech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Sinocelltech Group
The main advantage of trading using opposite Northern United and Sinocelltech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Sinocelltech Group 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 Sinocelltech Group will offset losses from the drop in Sinocelltech Group's long position.| Northern United vs. China Life Insurance | Northern United vs. Cinda Securities Co | Northern United vs. Piotech Inc A | Northern United vs. Dongxing Sec Co |
| Sinocelltech Group vs. Eyebright Medical Technology | Sinocelltech Group vs. APT Medical | Sinocelltech Group vs. Nanjing Putian Telecommunications | Sinocelltech Group vs. Dingli Communications Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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