Correlation Between Shanghai Pudong and Nuode Investment
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By analyzing existing cross correlation between Shanghai Pudong Development and Nuode Investment Co, you can compare the effects of market volatilities on Shanghai Pudong 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 Shanghai Pudong with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Nuode Investment.
Diversification Opportunities for Shanghai Pudong and Nuode Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Nuode is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Shanghai Pudong 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 Shanghai Pudong Development 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 Shanghai Pudong i.e., Shanghai Pudong and Nuode Investment go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Nuode Investment
Assuming the 90 days trading horizon Shanghai Pudong is expected to generate 9.26 times less return on investment than Nuode Investment. But when comparing it to its historical volatility, Shanghai Pudong Development is 2.24 times less risky than Nuode Investment. It trades about 0.06 of its potential returns per unit of risk. Nuode Investment Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Nuode Investment Co on August 28, 2024 and sell it today you would earn a total of 223.00 from holding Nuode Investment Co or generate 76.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Nuode Investment Co
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Nuode Investment |
Shanghai Pudong and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Nuode Investment
The main advantage of trading using opposite Shanghai Pudong and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong 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.| Shanghai Pudong vs. CICT Mobile Communication | Shanghai Pudong vs. Guangzhou Zhujiang Brewery | Shanghai Pudong vs. State Grid InformationCommunication | Shanghai Pudong vs. Offshore Oil Engineering |
| Nuode Investment vs. Humanwell Healthcare Group | Nuode Investment vs. China Reform Health | Nuode Investment vs. Hunan Tyen Machinery | Nuode Investment vs. Masterwork Machinery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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