Correlation Between NURAN WIRELESS and TIMES CHINA

Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS and TIMES CHINA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NURAN WIRELESS and TIMES CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NURAN WIRELESS INC and TIMES CHINA HLDGS, you can compare the effects of market volatilities on NURAN WIRELESS and TIMES CHINA 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 NURAN WIRELESS with a short position of TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and TIMES CHINA.

Diversification Opportunities for NURAN WIRELESS and TIMES CHINA

0.0

Correlation Coefficient

NURAN WIRELESS  TIMES CHINA

Pay attention - limited upside

The 3 months correlation between NURAN and TIMES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS and NURAN WIRELESS 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 NURAN WIRELESS INC are associated (or correlated) with TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of NURAN WIRELESS i.e., NURAN WIRELESS and TIMES CHINA go up and down completely randomly.

Pair Corralation between NURAN WIRELESS and TIMES CHINA

If you would invest  0.00  in TIMES CHINA HLDGS on October 6, 2024 and sell it today you would earn a total of  0.00  from holding TIMES CHINA HLDGS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

NURAN WIRELESS INC  vs.  TIMES CHINA HLDGS

NURAN WIRELESS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NURAN WIRELESS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

TIMES CHINA HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TIMES CHINA HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TIMES CHINA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with NURAN WIRELESS and TIMES CHINA

The main advantage of trading using opposite NURAN WIRELESS and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.

The idea behind NURAN WIRELESS INC and TIMES CHINA HLDGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.