Correlation Between Xiwang Foodstuffs and Nuode Investment
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Nuode Investment Co, you can compare the effects of market volatilities on Xiwang Foodstuffs and Nuode Investment 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 Xiwang Foodstuffs with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Nuode Investment.
Diversification Opportunities for Xiwang Foodstuffs and Nuode Investment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Nuode is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Xiwang Foodstuffs 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 Xiwang Foodstuffs Co are associated (or correlated) with Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Nuode Investment go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Nuode Investment
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Nuode Investment. In addition to that, Xiwang Foodstuffs is 1.21 times more volatile than Nuode Investment Co. It trades about -0.19 of its total potential returns per unit of risk. Nuode Investment Co is currently generating about -0.21 per unit of volatility. If you would invest 421.00 in Nuode Investment Co on October 24, 2024 and sell it today you would lose (38.00) from holding Nuode Investment Co or give up 9.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Nuode Investment Co
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Nuode Investment |
Xiwang Foodstuffs and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Nuode Investment
The main advantage of trading using opposite Xiwang Foodstuffs and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Xiwang Foodstuffs vs. Cambricon Technologies Corp | Xiwang Foodstuffs vs. SGSG Sciencetechnology Co | Xiwang Foodstuffs vs. Loongson Technology Corp | Xiwang Foodstuffs vs. Jiangsu Flowers King |
| Nuode Investment vs. Cultural Investment Holdings | Nuode Investment vs. Luyin Investment Group | Nuode Investment vs. Kunwu Jiuding Investment | Nuode Investment vs. Chengdu Spaceon Electronics |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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