Correlation Between Neptune Digital and China Finance
Can any of the company-specific risk be diversified away by investing in both Neptune Digital and China Finance 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 Neptune Digital and China Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neptune Digital Assets and China Finance Online, you can compare the effects of market volatilities on Neptune Digital and China Finance 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 Neptune Digital with a short position of China Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neptune Digital and China Finance.
Diversification Opportunities for Neptune Digital and China Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Neptune and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Neptune Digital Assets and China Finance Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance Online and Neptune Digital 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 Neptune Digital Assets are associated (or correlated) with China Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance Online has no effect on the direction of Neptune Digital i.e., Neptune Digital and China Finance go up and down completely randomly.
Pair Corralation between Neptune Digital and China Finance
Assuming the 90 days horizon Neptune Digital is expected to generate 5.83 times less return on investment than China Finance. But when comparing it to its historical volatility, Neptune Digital Assets is 7.27 times less risky than China Finance. It trades about 0.07 of its potential returns per unit of risk. China Finance Online is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.01 in China Finance Online on September 2, 2024 and sell it today you would earn a total of 0.00 from holding China Finance Online or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neptune Digital Assets vs. China Finance Online
Performance |
| Timeline |
| Neptune Digital Assets |
| China Finance Online |
Neptune Digital and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neptune Digital and China Finance
The main advantage of trading using opposite Neptune Digital and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neptune Digital position performs unexpectedly, China Finance 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 Finance will offset losses from the drop in China Finance's long position.| Neptune Digital vs. Cathedra Bitcoin | Neptune Digital vs. BLOK Technologies | Neptune Digital vs. iMining Blockchain and | Neptune Digital vs. DeFi Technologies |
| China Finance vs. Morgan Stanley | China Finance vs. Goldman Sachs Group | China Finance vs. HUMANA INC | China Finance vs. SCOR PK |
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 CEOs Directory module to screen CEOs from public companies around the world.
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