Correlation Between NAURA Technology and Zhejiang Cayi

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Can any of the company-specific risk be diversified away by investing in both NAURA Technology and Zhejiang Cayi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NAURA Technology and Zhejiang Cayi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAURA Technology Group and Zhejiang Cayi Vacuum, you can compare the effects of market volatilities on NAURA Technology and Zhejiang Cayi 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 NAURA Technology with a short position of Zhejiang Cayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAURA Technology and Zhejiang Cayi.

Diversification Opportunities for NAURA Technology and Zhejiang Cayi

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between NAURA and Zhejiang is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NAURA Technology Group and Zhejiang Cayi Vacuum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Cayi Vacuum and NAURA Technology 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 NAURA Technology Group are associated (or correlated) with Zhejiang Cayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Cayi Vacuum has no effect on the direction of NAURA Technology i.e., NAURA Technology and Zhejiang Cayi go up and down completely randomly.

Pair Corralation between NAURA Technology and Zhejiang Cayi

Assuming the 90 days trading horizon NAURA Technology Group is expected to generate 1.95 times more return on investment than Zhejiang Cayi. However, NAURA Technology is 1.95 times more volatile than Zhejiang Cayi Vacuum. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Cayi Vacuum is currently generating about -0.15 per unit of risk. If you would invest  37,040  in NAURA Technology Group on September 8, 2025 and sell it today you would earn a total of  8,010  from holding NAURA Technology Group or generate 21.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

NAURA Technology Group  vs.  Zhejiang Cayi Vacuum

 Performance 
       Timeline  
NAURA Technology 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in NAURA Technology Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, NAURA Technology sustained solid returns over the last few months and may actually be approaching a breakup point.
Zhejiang Cayi Vacuum 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Zhejiang Cayi Vacuum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

NAURA Technology and Zhejiang Cayi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NAURA Technology and Zhejiang Cayi

The main advantage of trading using opposite NAURA Technology and Zhejiang Cayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAURA Technology position performs unexpectedly, Zhejiang Cayi 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 Zhejiang Cayi will offset losses from the drop in Zhejiang Cayi's long position.
The idea behind NAURA Technology Group and Zhejiang Cayi Vacuum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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