Correlation Between Juewei Food and Northking Information
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By analyzing existing cross correlation between Juewei Food Co and Northking Information Technology, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Northking Information.
Diversification Opportunities for Juewei Food and Northking Information
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Northking is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Northking Information go up and down completely randomly.
Pair Corralation between Juewei Food and Northking Information
Assuming the 90 days trading horizon Juewei Food is expected to generate 2.15 times less return on investment than Northking Information. In addition to that, Juewei Food is 1.14 times more volatile than Northking Information Technology. It trades about 0.04 of its total potential returns per unit of risk. Northking Information Technology is currently generating about 0.09 per unit of volatility. If you would invest 1,442 in Northking Information Technology on September 19, 2024 and sell it today you would earn a total of 79.00 from holding Northking Information Technology or generate 5.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Northking Information Technolo
Performance |
Timeline |
Juewei Food |
Northking Information |
Juewei Food and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Northking Information
The main advantage of trading using opposite Juewei Food and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.Juewei Food vs. Fujian Nanwang Environment | Juewei Food vs. Baoshan Iron Steel | Juewei Food vs. Shenzhen Bioeasy Biotechnology | Juewei Food vs. Jinhe Biotechnology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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