Correlation Between Hefei Metalforming and Northern United
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and Northern United Publishing, you can compare the effects of market volatilities on Hefei Metalforming and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Northern United.
Diversification Opportunities for Hefei Metalforming and Northern United
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Northern is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Northern United go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Northern United
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.24 times less return on investment than Northern United. In addition to that, Hefei Metalforming is 1.65 times more volatile than Northern United Publishing. It trades about 0.15 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.3 per unit of volatility. If you would invest 594.00 in Northern United Publishing on November 7, 2024 and sell it today you would earn a total of 58.00 from holding Northern United Publishing or generate 9.76% 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. Northern United Publishing
Performance |
| Timeline |
| Hefei Metalforming Mach |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northern United Publ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hefei Metalforming and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Northern United
The main advantage of trading using opposite Hefei Metalforming and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.The idea behind Hefei Metalforming Mach and Northern United Publishing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world |