Correlation Between Xian Sunresin and Nuode Investment
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By analyzing existing cross correlation between Xian Sunresin New and Nuode Investment Co, you can compare the effects of market volatilities on Xian Sunresin 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 Xian Sunresin with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian Sunresin and Nuode Investment.
Diversification Opportunities for Xian Sunresin and Nuode Investment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xian and Nuode is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xian Sunresin New and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Xian Sunresin 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 Xian Sunresin New 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 Xian Sunresin i.e., Xian Sunresin and Nuode Investment go up and down completely randomly.
Pair Corralation between Xian Sunresin and Nuode Investment
Assuming the 90 days trading horizon Xian Sunresin is expected to generate 1.24 times less return on investment than Nuode Investment. But when comparing it to its historical volatility, Xian Sunresin New is 1.85 times less risky than Nuode Investment. It trades about 0.21 of its potential returns per unit of risk. Nuode Investment Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Nuode Investment Co on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Nuode Investment Co or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xian Sunresin New vs. Nuode Investment Co
Performance |
| Timeline |
| Xian Sunresin New |
| Nuode Investment |
Xian Sunresin and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian Sunresin and Nuode Investment
The main advantage of trading using opposite Xian Sunresin and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian Sunresin 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.| Xian Sunresin vs. Heilongjiang Transport Development | Xian Sunresin vs. China Aluminum International | Xian Sunresin vs. Tianshan Aluminum Group | Xian Sunresin vs. Aluminum Corp of |
| Nuode Investment vs. Cultural Investment Holdings | Nuode Investment vs. Gome Telecom Equipment | Nuode Investment vs. Bus Online Co | Nuode Investment vs. Holitech Technology Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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