Correlation Between Niutech Environment and Jilin Jlu
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By analyzing existing cross correlation between Niutech Environment Technology and Jilin Jlu Communication, you can compare the effects of market volatilities on Niutech Environment and Jilin Jlu 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 Niutech Environment with a short position of Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Jilin Jlu.
Diversification Opportunities for Niutech Environment and Jilin Jlu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Niutech and Jilin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication and Niutech Environment 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 Niutech Environment Technology are associated (or correlated) with Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Niutech Environment i.e., Niutech Environment and Jilin Jlu go up and down completely randomly.
Pair Corralation between Niutech Environment and Jilin Jlu
Assuming the 90 days trading horizon Niutech Environment Technology is expected to generate 1.06 times more return on investment than Jilin Jlu. However, Niutech Environment is 1.06 times more volatile than Jilin Jlu Communication. It trades about 0.3 of its potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.05 per unit of risk. If you would invest 1,380 in Niutech Environment Technology on December 10, 2024 and sell it today you would earn a total of 183.00 from holding Niutech Environment Technology or generate 13.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Niutech Environment Technology vs. Jilin Jlu Communication
Performance |
Timeline |
Niutech Environment |
Jilin Jlu Communication |
Niutech Environment and Jilin Jlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Niutech Environment and Jilin Jlu
The main advantage of trading using opposite Niutech Environment and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.Niutech Environment vs. Sanbo Hospital Management | Niutech Environment vs. Sichuan Fulin Transportation | Niutech Environment vs. Shenzhen Urban Transport | Niutech Environment vs. Heren Health Co |
Jilin Jlu vs. Hengkang Medical Group | Jilin Jlu vs. Dingli Communications Corp | Jilin Jlu vs. Kontour Medical Technology | Jilin Jlu vs. Allmed Medical Products |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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