Correlation Between 70082LAB3 and The9
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By analyzing existing cross correlation between US70082LAB36 and The9 Ltd ADR, you can compare the effects of market volatilities on 70082LAB3 and The9 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 70082LAB3 with a short position of The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and The9.
Diversification Opportunities for 70082LAB3 and The9
Very weak diversification
The 3 months correlation between 70082LAB3 and The9 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR and 70082LAB3 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 US70082LAB36 are associated (or correlated) with The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and The9 go up and down completely randomly.
Pair Corralation between 70082LAB3 and The9
Assuming the 90 days trading horizon US70082LAB36 is expected to generate 0.14 times more return on investment than The9. However, US70082LAB36 is 7.24 times less risky than The9. It trades about -0.34 of its potential returns per unit of risk. The9 Ltd ADR is currently generating about -0.26 per unit of risk. If you would invest 8,893 in US70082LAB36 on December 1, 2024 and sell it today you would lose (443.00) from holding US70082LAB36 or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
US70082LAB36 vs. The9 Ltd ADR
Performance |
| Timeline |
| US70082LAB36 |
| The9 Ltd ADR |
70082LAB3 and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and The9
The main advantage of trading using opposite 70082LAB3 and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9's long position.| 70082LAB3 vs. Bragg Gaming Group | 70082LAB3 vs. Acumen Pharmaceuticals | 70082LAB3 vs. Roblox Corp | 70082LAB3 vs. Abcellera Biologics |
| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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