Correlation Between N2OFF and China Green

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Can any of the company-specific risk be diversified away by investing in both N2OFF and China Green 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 N2OFF and China Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N2OFF Inc and China Green Agriculture, you can compare the effects of market volatilities on N2OFF and China Green 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 N2OFF with a short position of China Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of N2OFF and China Green.

Diversification Opportunities for N2OFF and China Green

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between N2OFF and China is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding N2OFF Inc and China Green Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Green Agriculture and N2OFF 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 N2OFF Inc are associated (or correlated) with China Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Green Agriculture has no effect on the direction of N2OFF i.e., N2OFF and China Green go up and down completely randomly.

Pair Corralation between N2OFF and China Green

Given the investment horizon of 90 days N2OFF Inc is expected to under-perform the China Green. In addition to that, N2OFF is 1.58 times more volatile than China Green Agriculture. It trades about -0.04 of its total potential returns per unit of risk. China Green Agriculture is currently generating about 0.0 per unit of volatility. If you would invest  509.00  in China Green Agriculture on August 28, 2024 and sell it today you would lose (311.00) from holding China Green Agriculture or give up 61.1% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.99%
ValuesDaily Returns

N2OFF Inc  vs.  China Green Agriculture

 Performance 
       Timeline  
N2OFF Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days N2OFF Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.
China Green Agriculture 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in China Green Agriculture are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, China Green sustained solid returns over the last few months and may actually be approaching a breakup point.

N2OFF and China Green Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with N2OFF and China Green

The main advantage of trading using opposite N2OFF and China Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N2OFF position performs unexpectedly, China Green 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 China Green will offset losses from the drop in China Green's long position.
The idea behind N2OFF Inc and China Green Agriculture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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