Correlation Between Jiangsu Pacific and Northking Information
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Northking Information Technology, you can compare the effects of market volatilities on Jiangsu Pacific 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 Jiangsu Pacific with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Northking Information.
Diversification Opportunities for Jiangsu Pacific and Northking Information
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Northking is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Jiangsu Pacific 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 Jiangsu Pacific Quartz 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 Jiangsu Pacific i.e., Jiangsu Pacific and Northking Information go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Northking Information
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Northking Information. In addition to that, Jiangsu Pacific is 1.13 times more volatile than Northking Information Technology. It trades about -0.07 of its total potential returns per unit of risk. Northking Information Technology is currently generating about 0.02 per unit of volatility. If you would invest 1,396 in Northking Information Technology on September 28, 2024 and sell it today you would earn a total of 81.00 from holding Northking Information Technology or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Northking Information Technolo
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Northking Information |
Jiangsu Pacific and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Northking Information
The main advantage of trading using opposite Jiangsu Pacific and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific 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.| Jiangsu Pacific vs. Ming Yang Smart | Jiangsu Pacific vs. 159681 | Jiangsu Pacific vs. 159005 | Jiangsu Pacific vs. Loctek Ergonomic Technology |
| Northking Information vs. Kweichow Moutai Co | Northking Information vs. Shenzhen Mindray Bio Medical | Northking Information vs. Jiangsu Pacific Quartz | Northking Information vs. G bits Network 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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