Correlation Between AIMA Technology and Northking Information
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By analyzing existing cross correlation between AIMA Technology Group and Northking Information Technology, you can compare the effects of market volatilities on AIMA Technology 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 AIMA Technology with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIMA Technology and Northking Information.
Diversification Opportunities for AIMA Technology and Northking Information
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIMA and Northking is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding AIMA Technology Group and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and AIMA Technology 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 AIMA Technology Group 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 AIMA Technology i.e., AIMA Technology and Northking Information go up and down completely randomly.
Pair Corralation between AIMA Technology and Northking Information
Assuming the 90 days trading horizon AIMA Technology Group is expected to generate 0.77 times more return on investment than Northking Information. However, AIMA Technology Group is 1.3 times less risky than Northking Information. It trades about 0.22 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.0 per unit of risk. If you would invest 3,341 in AIMA Technology Group on September 13, 2024 and sell it today you would earn a total of 970.00 from holding AIMA Technology Group or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIMA Technology Group vs. Northking Information Technolo
Performance |
| Timeline |
| AIMA Technology Group |
| Northking Information |
AIMA Technology and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIMA Technology and Northking Information
The main advantage of trading using opposite AIMA Technology and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIMA Technology 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.| AIMA Technology vs. Sinosteel Engineering and | AIMA Technology vs. Anyang Iron Steel | AIMA Technology vs. GRG Banking Equipment | AIMA Technology vs. Tianjin Capital Environmental |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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