Correlation Between Titan Pharmaceuticals and Niu Technologies

Can any of the company-specific risk be diversified away by investing in both Titan Pharmaceuticals and Niu Technologies 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 Titan Pharmaceuticals and Niu Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Titan Pharmaceuticals and Niu Technologies, you can compare the effects of market volatilities on Titan Pharmaceuticals and Niu Technologies 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 Titan Pharmaceuticals with a short position of Niu Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Pharmaceuticals and Niu Technologies.

Diversification Opportunities for Titan Pharmaceuticals and Niu Technologies

-0.01

Correlation Coefficient

Titan Pharmaceuticals  Niu Technologies

Good diversification

The 3 months correlation between Titan and Niu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Titan Pharmaceuticals and Niu Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niu Technologies and Titan Pharmaceuticals 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 Titan Pharmaceuticals are associated (or correlated) with Niu Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niu Technologies has no effect on the direction of Titan Pharmaceuticals i.e., Titan Pharmaceuticals and Niu Technologies go up and down completely randomly.

Pair Corralation between Titan Pharmaceuticals and Niu Technologies

Given the investment horizon of 90 days Titan Pharmaceuticals is expected to generate 8.03 times less return on investment than Niu Technologies. In addition to that, Titan Pharmaceuticals is 1.3 times more volatile than Niu Technologies. It trades about 0.0 of its total potential returns per unit of risk. Niu Technologies is currently generating about 0.03 per unit of volatility. If you would invest  225.00  in Niu Technologies on February 4, 2024 and sell it today you would earn a total of  4.00  from holding Niu Technologies or generate 1.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Titan Pharmaceuticals  vs.  Niu Technologies

Titan Pharmaceuticals

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Titan Pharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Titan Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Niu Technologies

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Niu Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward indicators, Niu Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Titan Pharmaceuticals and Niu Technologies

The main advantage of trading using opposite Titan Pharmaceuticals and Niu Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Pharmaceuticals position performs unexpectedly, Niu Technologies 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 Niu Technologies will offset losses from the drop in Niu Technologies' long position.

The idea behind Titan Pharmaceuticals and Niu Technologies 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.