Correlation Between Niutech Environment and Guangzhou Jinyi
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By analyzing existing cross correlation between Niutech Environment Technology and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Niutech Environment and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Guangzhou Jinyi.
Diversification Opportunities for Niutech Environment and Guangzhou Jinyi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Niutech and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Niutech Environment i.e., Niutech Environment and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Niutech Environment and Guangzhou Jinyi
Assuming the 90 days trading horizon Niutech Environment is expected to generate 14.21 times less return on investment than Guangzhou Jinyi. But when comparing it to its historical volatility, Niutech Environment Technology is 1.6 times less risky than Guangzhou Jinyi. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Guangzhou Jinyi Media on September 13, 2024 and sell it today you would earn a total of 183.00 from holding Guangzhou Jinyi Media or generate 25.96% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Niutech Environment |
| Guangzhou Jinyi Media |
Niutech Environment and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Guangzhou Jinyi
The main advantage of trading using opposite Niutech Environment and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Niutech Environment vs. New China Life | Niutech Environment vs. Ming Yang Smart | Niutech Environment vs. 159681 | Niutech Environment vs. 159005 |
| Guangzhou Jinyi vs. PKU HealthCare Corp | Guangzhou Jinyi vs. Shenzhen Topway Video | Guangzhou Jinyi vs. Kuangda Technology Group | Guangzhou Jinyi vs. Niutech Environment 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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