Correlation Between NAURA Technology and Shanghai Xinhua
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By analyzing existing cross correlation between NAURA Technology Group and Shanghai Xinhua Media, you can compare the effects of market volatilities on NAURA Technology and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Shanghai Xinhua.
Diversification Opportunities for NAURA Technology and Shanghai Xinhua
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NAURA and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of NAURA Technology i.e., NAURA Technology and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between NAURA Technology and Shanghai Xinhua
Assuming the 90 days trading horizon NAURA Technology is expected to generate 2.65 times less return on investment than Shanghai Xinhua. But when comparing it to its historical volatility, NAURA Technology Group is 1.41 times less risky than Shanghai Xinhua. It trades about 0.15 of its potential returns per unit of risk. Shanghai Xinhua Media is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 383.00 in Shanghai Xinhua Media on September 11, 2024 and sell it today you would earn a total of 442.00 from holding Shanghai Xinhua Media or generate 115.4% 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. Shanghai Xinhua Media
Performance |
Timeline |
NAURA Technology |
Shanghai Xinhua Media |
NAURA Technology and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NAURA Technology and Shanghai Xinhua
The main advantage of trading using opposite NAURA Technology and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua's long position.NAURA Technology vs. Kuang Chi Technologies | NAURA Technology vs. Fujian Newland Computer | NAURA Technology vs. Allwin Telecommunication Co | NAURA Technology vs. Humanwell Healthcare Group |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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