Correlation Between Advanced Micro and Niutech Environment
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By analyzing existing cross correlation between Advanced Micro Fabrication and Niutech Environment Technology, you can compare the effects of market volatilities on Advanced Micro and Niutech Environment 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 Advanced Micro with a short position of Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Niutech Environment.
Diversification Opportunities for Advanced Micro and Niutech Environment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Niutech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment and Advanced Micro 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 Advanced Micro Fabrication are associated (or correlated) with Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Advanced Micro i.e., Advanced Micro and Niutech Environment go up and down completely randomly.
Pair Corralation between Advanced Micro and Niutech Environment
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 1.61 times more return on investment than Niutech Environment. However, Advanced Micro is 1.61 times more volatile than Niutech Environment Technology. It trades about 0.15 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.11 per unit of risk. If you would invest 18,088 in Advanced Micro Fabrication on August 29, 2024 and sell it today you would earn a total of 2,436 from holding Advanced Micro Fabrication or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Fabrication vs. Niutech Environment Technology
Performance |
| Timeline |
| Advanced Micro Fabri |
| Niutech Environment |
Advanced Micro and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Niutech Environment
The main advantage of trading using opposite Advanced Micro and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Advanced Micro vs. Sichuan Hebang Biotechnology | Advanced Micro vs. ROPEOK Technology Group | Advanced Micro vs. Guangzhou Haige Communications | Advanced Micro vs. Guangdong Marubi Biotechnology |
| Niutech Environment vs. Dhc Software Co | Niutech Environment vs. China Railway Construction | Niutech Environment vs. Long Yuan Construction | Niutech Environment vs. Guangzhou KingTeller 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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