Correlation Between Daqo New and NCR Atleos

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Can any of the company-specific risk be diversified away by investing in both Daqo New and NCR Atleos 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 Daqo New and NCR Atleos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daqo New Energy and NCR Atleos, you can compare the effects of market volatilities on Daqo New and NCR Atleos 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 Daqo New with a short position of NCR Atleos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daqo New and NCR Atleos.

Diversification Opportunities for Daqo New and NCR Atleos

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Daqo and NCR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Daqo New Energy and NCR Atleos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Atleos and Daqo New 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 Daqo New Energy are associated (or correlated) with NCR Atleos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Atleos has no effect on the direction of Daqo New i.e., Daqo New and NCR Atleos go up and down completely randomly.

Pair Corralation between Daqo New and NCR Atleos

Allowing for the 90-day total investment horizon Daqo New Energy is expected to generate 2.43 times more return on investment than NCR Atleos. However, Daqo New is 2.43 times more volatile than NCR Atleos. It trades about 0.05 of its potential returns per unit of risk. NCR Atleos is currently generating about -0.02 per unit of risk. If you would invest  2,776  in Daqo New Energy on October 9, 2025 and sell it today you would earn a total of  185.00  from holding Daqo New Energy or generate 6.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Daqo New Energy  vs.  NCR Atleos

 Performance 
       Timeline  
Daqo New Energy 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Daqo New Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Daqo New reported solid returns over the last few months and may actually be approaching a breakup point.
NCR Atleos 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days NCR Atleos has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, NCR Atleos is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Daqo New and NCR Atleos Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Daqo New and NCR Atleos

The main advantage of trading using opposite Daqo New and NCR Atleos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daqo New position performs unexpectedly, NCR Atleos 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 NCR Atleos will offset losses from the drop in NCR Atleos' long position.
The idea behind Daqo New Energy and NCR Atleos 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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