Correlation Between The9 and 00206RAG7
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By analyzing existing cross correlation between The9 Ltd ADR and ATT INC 63, you can compare the effects of market volatilities on The9 and 00206RAG7 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 The9 with a short position of 00206RAG7. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and 00206RAG7.
Diversification Opportunities for The9 and 00206RAG7
Excellent diversification
The 3 months correlation between The9 and 00206RAG7 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR and ATT INC 63 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT INC 63 and The9 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 The9 Ltd ADR are associated (or correlated) with 00206RAG7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT INC 63 has no effect on the direction of The9 i.e., The9 and 00206RAG7 go up and down completely randomly.
Pair Corralation between The9 and 00206RAG7
Given the investment horizon of 90 days The9 Ltd ADR is expected to generate 7.14 times more return on investment than 00206RAG7. However, The9 is 7.14 times more volatile than ATT INC 63. It trades about 0.47 of its potential returns per unit of risk. ATT INC 63 is currently generating about -0.05 per unit of risk. If you would invest 829.00 in The9 Ltd ADR on September 1, 2024 and sell it today you would earn a total of 646.00 from holding The9 Ltd ADR or generate 77.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
The9 Ltd ADR vs. ATT INC 63
Performance |
| Timeline |
| The9 Ltd ADR |
| ATT INC 63 |
The9 and 00206RAG7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and 00206RAG7
The main advantage of trading using opposite The9 and 00206RAG7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 position performs unexpectedly, 00206RAG7 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 00206RAG7 will offset losses from the drop in 00206RAG7's long position.| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
| 00206RAG7 vs. Mills Music Trust | 00206RAG7 vs. Cimpress NV | 00206RAG7 vs. Organic Sales and | 00206RAG7 vs. NioCorp Developments Ltd |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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