Correlation Between XinJiang GuoTong and Northking Information
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Northking Information Technology, you can compare the effects of market volatilities on XinJiang GuoTong and Northking Information 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 XinJiang GuoTong with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Northking Information.
Diversification Opportunities for XinJiang GuoTong and Northking Information
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XinJiang and Northking is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and XinJiang GuoTong 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 XinJiang GuoTong Pipeline are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Northking Information go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Northking Information
Assuming the 90 days trading horizon XinJiang GuoTong is expected to generate 1.05 times less return on investment than Northking Information. But when comparing it to its historical volatility, XinJiang GuoTong Pipeline is 1.22 times less risky than Northking Information. It trades about 0.21 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,058 in Northking Information Technology on September 11, 2024 and sell it today you would earn a total of 494.00 from holding Northking Information Technology or generate 46.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Northking Information Technolo
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Northking Information |
XinJiang GuoTong and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Northking Information
The main advantage of trading using opposite XinJiang GuoTong and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.XinJiang GuoTong vs. Time Publishing and | XinJiang GuoTong vs. Heilongjiang Publishing Media | XinJiang GuoTong vs. Rising Nonferrous Metals | XinJiang GuoTong vs. CITIC Metal Co |
Northking Information vs. AVIC Fund Management | Northking Information vs. Shenzhen Bingchuan Network | Northking Information vs. Penghua Shenzhen Energy | Northking Information vs. Jizhong Energy Resources |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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