Correlation Between Niutech Environment and Changchun
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By analyzing existing cross correlation between Niutech Environment Technology and Changchun UP Optotech, you can compare the effects of market volatilities on Niutech Environment and Changchun 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 Niutech Environment with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Changchun.
Diversification Opportunities for Niutech Environment and Changchun
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Niutech and Changchun is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Niutech Environment 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 Niutech Environment Technology are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Niutech Environment i.e., Niutech Environment and Changchun go up and down completely randomly.
Pair Corralation between Niutech Environment and Changchun
Assuming the 90 days trading horizon Niutech Environment Technology is expected to generate 0.81 times more return on investment than Changchun. However, Niutech Environment Technology is 1.24 times less risky than Changchun. It trades about 0.1 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.0 per unit of risk. If you would invest 1,297 in Niutech Environment Technology on November 30, 2024 and sell it today you would earn a total of 94.00 from holding Niutech Environment Technology or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niutech Environment Technology vs. Changchun UP Optotech
Performance |
| Timeline |
| Niutech Environment |
| Changchun UP Optotech |
Niutech Environment and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Changchun
The main advantage of trading using opposite Niutech Environment and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Niutech Environment vs. Beijing Watertek Information | Niutech Environment vs. Anshan Senyuan Road | Niutech Environment vs. RoadMain T Co | Niutech Environment vs. Jinxiandai Information Industry |
| Changchun vs. Miracll Chemicals Co | Changchun vs. Yingde Greatchem Chemicals | Changchun vs. Shannon Semiconductor Technology | Changchun vs. Shenzhen Noposion Agrochemicals |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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