Correlation Between Dawning Information and Northking Information
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By analyzing existing cross correlation between Dawning Information Industry and Northking Information Technology, you can compare the effects of market volatilities on Dawning Information and Northking Information 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 Dawning Information with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Northking Information.
Diversification Opportunities for Dawning Information and Northking Information
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dawning and Northking is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Dawning 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 Dawning Information Industry are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Dawning Information i.e., Dawning Information and Northking Information go up and down completely randomly.
Pair Corralation between Dawning Information and Northking Information
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.12 times more return on investment than Northking Information. However, Dawning Information is 1.12 times more volatile than Northking Information Technology. It trades about 0.04 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.01 per unit of risk. If you would invest 6,112 in Dawning Information Industry on September 9, 2024 and sell it today you would earn a total of 1,587 from holding Dawning Information Industry or generate 25.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dawning Information Industry vs. Northking Information Technolo
Performance |
Timeline |
Dawning Information |
Northking Information |
Dawning Information and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dawning Information and Northking Information
The main advantage of trading using opposite Dawning Information and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.Dawning Information vs. Biwin Storage Technology | Dawning Information vs. PetroChina Co Ltd | Dawning Information vs. Industrial and Commercial | Dawning Information vs. China Construction Bank |
Northking Information vs. Industrial and Commercial | Northking Information vs. Agricultural Bank of | Northking Information vs. China Construction Bank | Northking Information vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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