Correlation Between Hefei Metalforming and Northking Information
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By analyzing existing cross correlation between Hefei Metalforming Mach and Northking Information Technology, you can compare the effects of market volatilities on Hefei Metalforming and Northking Information 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 Hefei Metalforming with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Northking Information.
Diversification Opportunities for Hefei Metalforming and Northking Information
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Northking is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Northking Information go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Northking Information
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.05 times less return on investment than Northking Information. In addition to that, Hefei Metalforming is 1.18 times more volatile than Northking Information Technology. It trades about 0.03 of its total potential returns per unit of risk. Northking Information Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,341 in Northking Information Technology on September 14, 2024 and sell it today you would earn a total of 273.00 from holding Northking Information Technology or generate 20.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Northking Information Technolo
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Northking Information |
Hefei Metalforming and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Northking Information
The main advantage of trading using opposite Hefei Metalforming and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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