Correlation Between Northking Information and XinJiang GuoTong
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By analyzing existing cross correlation between Northking Information Technology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Northking Information and XinJiang GuoTong 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 Northking Information with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and XinJiang GuoTong.
Diversification Opportunities for Northking Information and XinJiang GuoTong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and XinJiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Northking Information 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 Northking Information Technology are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Northking Information i.e., Northking Information and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Northking Information and XinJiang GuoTong
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 0.98 times more return on investment than XinJiang GuoTong. However, Northking Information Technology is 1.02 times less risky than XinJiang GuoTong. It trades about 0.03 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.0 per unit of risk. If you would invest 1,345 in Northking Information Technology on September 6, 2024 and sell it today you would earn a total of 205.00 from holding Northking Information Technology or generate 15.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Northking Information Technolo vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Northking Information |
XinJiang GuoTong Pipeline |
Northking Information and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Northking Information and XinJiang GuoTong
The main advantage of trading using opposite Northking Information and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.Northking Information vs. Air China Ltd | Northking Information vs. Linzhou Heavy Machinery | Northking Information vs. Hubeiyichang Transportation Group | Northking Information vs. Sportsoul Co Ltd |
XinJiang GuoTong vs. Zhongrun Resources Investment | XinJiang GuoTong vs. Tieling Newcity Investment | XinJiang GuoTong vs. Jointo Energy Investment | XinJiang GuoTong vs. Shuhua Sports Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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