Correlation Between Daqo New and NCR Atleos
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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daqo New Energy vs. NCR Atleos
Performance |
| Timeline |
| Daqo New Energy |
| NCR Atleos |
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.| Daqo New vs. Applied Opt | Daqo New vs. Vishay Intertechnology | Daqo New vs. Kulicke and Soffa | Daqo New vs. C3 Ai Inc |
| NCR Atleos vs. Clear Secure | NCR Atleos vs. Alarm Holdings | NCR Atleos vs. Pattern Group Series | NCR Atleos vs. Braze Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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