Correlation Between NAURA Technology and Anhui Gujing
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By analyzing existing cross correlation between NAURA Technology Group and Anhui Gujing Distillery, you can compare the effects of market volatilities on NAURA Technology and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Anhui Gujing.
Diversification Opportunities for NAURA Technology and Anhui Gujing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NAURA and Anhui is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of NAURA Technology i.e., NAURA Technology and Anhui Gujing go up and down completely randomly.
Pair Corralation between NAURA Technology and Anhui Gujing
Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.3 times more return on investment than Anhui Gujing. However, NAURA Technology is 1.3 times more volatile than Anhui Gujing Distillery. It trades about 0.16 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about 0.15 per unit of risk. If you would invest 29,302 in NAURA Technology Group on September 13, 2024 and sell it today you would earn a total of 9,784 from holding NAURA Technology Group or generate 33.39% 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. Anhui Gujing Distillery
Performance |
Timeline |
NAURA Technology |
Anhui Gujing Distillery |
NAURA Technology and Anhui Gujing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NAURA Technology and Anhui Gujing
The main advantage of trading using opposite NAURA Technology and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.NAURA Technology vs. Agricultural Bank of | NAURA Technology vs. Industrial and Commercial | NAURA Technology vs. Bank of China | NAURA Technology vs. China Construction Bank |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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