Correlation Between The9 and ARCHER
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By analyzing existing cross correlation between The9 Ltd ADR and ARCHER DANIELS MIDLAND 45, you can compare the effects of market volatilities on The9 and ARCHER 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 ARCHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and ARCHER.
Diversification Opportunities for The9 and ARCHER
Modest diversification
The 3 months correlation between The9 and ARCHER is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR and ARCHER DANIELS MIDLAND 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARCHER DANIELS MIDLAND 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 ARCHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARCHER DANIELS MIDLAND has no effect on the direction of The9 i.e., The9 and ARCHER go up and down completely randomly.
Pair Corralation between The9 and ARCHER
Given the investment horizon of 90 days The9 Ltd ADR is expected to generate 4.36 times more return on investment than ARCHER. However, The9 is 4.36 times more volatile than ARCHER DANIELS MIDLAND 45. It trades about 0.44 of its potential returns per unit of risk. ARCHER DANIELS MIDLAND 45 is currently generating about 0.34 per unit of risk. If you would invest 942.00 in The9 Ltd ADR on September 13, 2024 and sell it today you would earn a total of 813.00 from holding The9 Ltd ADR or generate 86.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
The9 Ltd ADR vs. ARCHER DANIELS MIDLAND 45
Performance |
| Timeline |
| The9 Ltd ADR |
| ARCHER DANIELS MIDLAND |
The9 and ARCHER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and ARCHER
The main advantage of trading using opposite The9 and ARCHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 position performs unexpectedly, ARCHER 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 ARCHER will offset losses from the drop in ARCHER's long position.| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
| ARCHER vs. AEP TEX INC | ARCHER vs. US BANK NATIONAL | ARCHER vs. Applied Blockchain | ARCHER vs. BigBearai 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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