Correlation Between Zhongtong Guomai and Northern United
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Northern United Publishing, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Northern United.
Diversification Opportunities for Zhongtong Guomai and Northern United
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Northern is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Northern United go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Northern United
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 11.67 times less return on investment than Northern United. In addition to that, Zhongtong Guomai is 1.85 times more volatile than Northern United Publishing. It trades about 0.01 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.25 per unit of volatility. If you would invest 627.00 in Northern United Publishing on September 5, 2024 and sell it today you would earn a total of 80.00 from holding Northern United Publishing or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Northern United Publishing
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Northern United Publ |
Zhongtong Guomai and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Northern United
The main advantage of trading using opposite Zhongtong Guomai and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. 360 Security Technology | Zhongtong Guomai vs. Tianshui Huatian Technology | Zhongtong Guomai vs. Sinofibers Technology Co | Zhongtong Guomai vs. Hoshine Silicon Ind |
| Northern United vs. Double Medical Technology | Northern United vs. Markor International Home | Northern United vs. Der International Home | Northern United vs. Kontour Medical Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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