Correlation Between Niutech Environment and Beijing Topnew
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By analyzing existing cross correlation between Niutech Environment Technology and Beijing Topnew Info, you can compare the effects of market volatilities on Niutech Environment and Beijing Topnew 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 Beijing Topnew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Beijing Topnew.
Diversification Opportunities for Niutech Environment and Beijing Topnew
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Niutech and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology and Beijing Topnew Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Topnew Info 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 Beijing Topnew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Topnew Info has no effect on the direction of Niutech Environment i.e., Niutech Environment and Beijing Topnew go up and down completely randomly.
Pair Corralation between Niutech Environment and Beijing Topnew
Assuming the 90 days trading horizon Niutech Environment is expected to generate 1.87 times less return on investment than Beijing Topnew. But when comparing it to its historical volatility, Niutech Environment Technology is 1.12 times less risky than Beijing Topnew. It trades about 0.07 of its potential returns per unit of risk. Beijing Topnew Info is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,294 in Beijing Topnew Info on September 2, 2024 and sell it today you would earn a total of 224.00 from holding Beijing Topnew Info or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niutech Environment Technology vs. Beijing Topnew Info
Performance |
| Timeline |
| Niutech Environment |
| Beijing Topnew Info |
Niutech Environment and Beijing Topnew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Beijing Topnew
The main advantage of trading using opposite Niutech Environment and Beijing Topnew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment position performs unexpectedly, Beijing Topnew 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 Beijing Topnew will offset losses from the drop in Beijing Topnew's long position.| Niutech Environment vs. Cultural Investment Holdings | Niutech Environment vs. Gome Telecom Equipment | Niutech Environment vs. Bus Online Co | Niutech Environment vs. Holitech Technology Co |
| Beijing Topnew vs. Jiujiang Shanshui Technology | Beijing Topnew vs. Jiangsu GDK Biotechnology | Beijing Topnew vs. Niutech Environment Technology | Beijing Topnew vs. Kuang Chi Technologies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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