Correlation Between NAURA Technology and Western Metal
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By analyzing existing cross correlation between NAURA Technology Group and Western Metal Materials, you can compare the effects of market volatilities on NAURA Technology and Western Metal 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 NAURA Technology with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Western Metal.
Diversification Opportunities for NAURA Technology and Western Metal
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NAURA and Western is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and NAURA Technology 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 NAURA Technology Group are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of NAURA Technology i.e., NAURA Technology and Western Metal go up and down completely randomly.
Pair Corralation between NAURA Technology and Western Metal
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 0.92 times more return on investment than Western Metal. However, NAURA Technology Group is 1.09 times less risky than Western Metal. It trades about 0.08 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.04 per unit of risk. If you would invest 24,565 in NAURA Technology Group on September 26, 2024 and sell it today you would earn a total of 16,285 from holding NAURA Technology Group or generate 66.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
NAURA Technology Group vs. Western Metal Materials
Performance |
Timeline |
NAURA Technology |
Western Metal Materials |
NAURA Technology and Western Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NAURA Technology and Western Metal
The main advantage of trading using opposite NAURA Technology and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.NAURA Technology vs. Western Metal Materials | NAURA Technology vs. Tongling Nonferrous Metals | NAURA Technology vs. Fujian Oriental Silver | NAURA Technology vs. Zhejiang Yayi Metal |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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