Correlation Between Cloud Live and Nanjing OLO

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cloud Live and Nanjing OLO 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 Cloud Live and Nanjing OLO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloud Live Technology and Nanjing OLO Home, you can compare the effects of market volatilities on Cloud Live and Nanjing OLO 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 Cloud Live with a short position of Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Nanjing OLO.

Diversification Opportunities for Cloud Live and Nanjing OLO

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Cloud and Nanjing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home and Cloud Live 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 Cloud Live Technology are associated (or correlated) with Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Cloud Live i.e., Cloud Live and Nanjing OLO go up and down completely randomly.

Pair Corralation between Cloud Live and Nanjing OLO

Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Nanjing OLO. In addition to that, Cloud Live is 2.68 times more volatile than Nanjing OLO Home. It trades about -0.26 of its total potential returns per unit of risk. Nanjing OLO Home is currently generating about 0.32 per unit of volatility. If you would invest  584.00  in Nanjing OLO Home on November 8, 2024 and sell it today you would earn a total of  55.00  from holding Nanjing OLO Home or generate 9.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Cloud Live Technology  vs.  Nanjing OLO Home

 Performance 
       Timeline  
Cloud Live Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cloud Live Technology 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 March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Nanjing OLO Home 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nanjing OLO Home has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Nanjing OLO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cloud Live and Nanjing OLO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cloud Live and Nanjing OLO

The main advantage of trading using opposite Cloud Live and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.
The idea behind Cloud Live Technology and Nanjing OLO Home 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY