Correlation Between Ye Chiu and NAURA Technology
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By analyzing existing cross correlation between Ye Chiu Metal and NAURA Technology Group, you can compare the effects of market volatilities on Ye Chiu and NAURA Technology 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 Ye Chiu with a short position of NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and NAURA Technology.
Diversification Opportunities for Ye Chiu and NAURA Technology
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 601388 and NAURA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Ye Chiu i.e., Ye Chiu and NAURA Technology go up and down completely randomly.
Pair Corralation between Ye Chiu and NAURA Technology
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the NAURA Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.02 times less risky than NAURA Technology. The stock trades about -0.02 of its potential returns per unit of risk. The NAURA Technology Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 24,315 in NAURA Technology Group on October 13, 2024 and sell it today you would earn a total of 14,050 from holding NAURA Technology Group or generate 57.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ye Chiu Metal vs. NAURA Technology Group
Performance |
Timeline |
Ye Chiu Metal |
NAURA Technology |
Ye Chiu and NAURA Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ye Chiu and NAURA Technology
The main advantage of trading using opposite Ye Chiu and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.Ye Chiu vs. Chongqing Shunbo Aluminum | Ye Chiu vs. Ningbo Fangzheng Automobile | Ye Chiu vs. Heilongjiang Transport Development | Ye Chiu vs. Aba Chemicals Corp |
NAURA Technology vs. Shanghai Yanpu Metal | NAURA Technology vs. Guangdong Jingyi Metal | NAURA Technology vs. Hubeiyichang Transportation Group | NAURA Technology vs. China Sports Industry |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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