Correlation Between China DatangRenewable and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both China DatangRenewable and NURAN WIRELESS 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 DatangRenewable and NURAN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Datang and NURAN WIRELESS INC, you can compare the effects of market volatilities on China DatangRenewable and NURAN WIRELESS 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 DatangRenewable with a short position of NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of China DatangRenewable and NURAN WIRELESS.
Diversification Opportunities for China DatangRenewable and NURAN WIRELESS
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and NURAN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding China Datang and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC and China DatangRenewable 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 Datang are associated (or correlated) with NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of China DatangRenewable i.e., China DatangRenewable and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between China DatangRenewable and NURAN WIRELESS
Assuming the 90 days horizon China Datang is expected to generate 0.3 times more return on investment than NURAN WIRELESS. However, China Datang is 3.34 times less risky than NURAN WIRELESS. It trades about -0.08 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about -0.08 per unit of risk. If you would invest 25.00 in China Datang on November 7, 2024 and sell it today you would lose (1.00) from holding China Datang or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Datang vs. NURAN WIRELESS INC
Performance |
| Timeline |
| China DatangRenewable |
| NURAN WIRELESS INC |
China DatangRenewable and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China DatangRenewable and NURAN WIRELESS
The main advantage of trading using opposite China DatangRenewable and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China DatangRenewable position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| China DatangRenewable vs. Penta Ocean Construction Co | China DatangRenewable vs. UNIVERSAL MUSIC GROUP | China DatangRenewable vs. GEAR4MUSIC LS 10 | China DatangRenewable vs. Titan Machinery |
| NURAN WIRELESS vs. Japan Tobacco | NURAN WIRELESS vs. TROPHY GAMES DEV | NURAN WIRELESS vs. QINGCI GAMES INC | NURAN WIRELESS vs. PNC Financial Services |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |