Correlation Between China Health and NCR Corp
Can any of the company-specific risk be diversified away by investing in both China Health and NCR Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Health and NCR Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Industries and NCR Corp Pref, you can compare the effects of market volatilities on China Health and NCR Corp 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 China Health with a short position of NCR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and NCR Corp.
Diversification Opportunities for China Health and NCR Corp
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and NCR is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding China Health Industries and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref and China Health 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 China Health Industries are associated (or correlated) with NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of China Health i.e., China Health and NCR Corp go up and down completely randomly.
Pair Corralation between China Health and NCR Corp
If you would invest 117,125 in NCR Corp Pref on August 28, 2024 and sell it today you would earn a total of 0.00 from holding NCR Corp Pref or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
China Health Industries vs. NCR Corp Pref
Performance |
| Timeline |
| China Health Industries |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Health and NCR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Health and NCR Corp
The main advantage of trading using opposite China Health and NCR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, NCR Corp 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 NCR Corp will offset losses from the drop in NCR Corp's long position.| China Health vs. Sphere Entertainment Co | China Health vs. Digi International | China Health vs. Anterix | China Health vs. Kandi Technologies Group |
| NCR Corp vs. Lincoln Electric Holdings | NCR Corp vs. Nextplat Corp | NCR Corp vs. Uber Technologies | NCR Corp vs. Bill Com Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance |