Correlation Between NetEase and ASTRAZENECA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NetEase and ASTRAZENECA 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 NetEase and ASTRAZENECA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetEase and ASTRAZENECA PLC, you can compare the effects of market volatilities on NetEase and ASTRAZENECA 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 NetEase with a short position of ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetEase and ASTRAZENECA.

Diversification Opportunities for NetEase and ASTRAZENECA

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between NetEase and ASTRAZENECA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NetEase and ASTRAZENECA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC and NetEase 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 NetEase are associated (or correlated) with ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC has no effect on the direction of NetEase i.e., NetEase and ASTRAZENECA go up and down completely randomly.

Pair Corralation between NetEase and ASTRAZENECA

Given the investment horizon of 90 days NetEase is expected to generate 8.83 times more return on investment than ASTRAZENECA. However, NetEase is 8.83 times more volatile than ASTRAZENECA PLC. It trades about 0.04 of its potential returns per unit of risk. ASTRAZENECA PLC is currently generating about 0.03 per unit of risk. If you would invest  6,909  in NetEase on September 12, 2024 and sell it today you would earn a total of  2,739  from holding NetEase or generate 39.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.39%
ValuesDaily Returns

NetEase  vs.  ASTRAZENECA PLC

 Performance 
       Timeline  
NetEase 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in NetEase are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, NetEase unveiled solid returns over the last few months and may actually be approaching a breakup point.
ASTRAZENECA PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASTRAZENECA PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ASTRAZENECA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

NetEase and ASTRAZENECA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NetEase and ASTRAZENECA

The main advantage of trading using opposite NetEase and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetEase position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA's long position.
NetEase vs. GDEV Inc
NetEase vs. AEye Inc
NetEase vs. Arqit Quantum Warrants
NetEase vs. Xos Equity Warrants
The idea behind NetEase and ASTRAZENECA PLC 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.
ASTRAZENECA vs. Meiwu Technology Co
ASTRAZENECA vs. NetEase
ASTRAZENECA vs. Corsair Gaming
ASTRAZENECA vs. Lululemon Athletica
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Equity Valuation
Check real value of public entities based on technical and fundamental data
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY