Correlation Between Zhongtong Guomai and Northking Information
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Northking Information Technology, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Northking Information.
Diversification Opportunities for Zhongtong Guomai and Northking Information
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Northking is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Northking Information go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Northking Information
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.98 times more return on investment than Northking Information. However, Zhongtong Guomai Communication is 1.02 times less risky than Northking Information. It trades about 0.2 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.18 per unit of risk. If you would invest 729.00 in Zhongtong Guomai Communication on September 6, 2024 and sell it today you would earn a total of 380.00 from holding Zhongtong Guomai Communication or generate 52.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Northking Information Technolo
Performance |
Timeline |
Zhongtong Guomai Com |
Northking Information |
Zhongtong Guomai and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Northking Information
The main advantage of trading using opposite Zhongtong Guomai and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. Wuhan Xianglong Power | Zhongtong Guomai vs. Yuanjie Semiconductor Technology | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Yunnan Bowin Technology |
Northking Information vs. Air China Ltd | Northking Information vs. Linzhou Heavy Machinery | Northking Information vs. Hubeiyichang Transportation Group | Northking Information vs. Sportsoul Co Ltd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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