Correlation Between Nuode Investment and Bohai Leasing
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By analyzing existing cross correlation between Nuode Investment Co and Bohai Leasing Co, you can compare the effects of market volatilities on Nuode Investment and Bohai Leasing 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 Nuode Investment with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Bohai Leasing.
Diversification Opportunities for Nuode Investment and Bohai Leasing
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuode and Bohai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Nuode Investment 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 Nuode Investment Co are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Nuode Investment i.e., Nuode Investment and Bohai Leasing go up and down completely randomly.
Pair Corralation between Nuode Investment and Bohai Leasing
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the Bohai Leasing. In addition to that, Nuode Investment is 1.03 times more volatile than Bohai Leasing Co. It trades about -0.05 of its total potential returns per unit of risk. Bohai Leasing Co is currently generating about 0.05 per unit of volatility. If you would invest 239.00 in Bohai Leasing Co on November 6, 2024 and sell it today you would earn a total of 117.00 from holding Bohai Leasing Co or generate 48.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. Bohai Leasing Co
Performance |
| Timeline |
| Nuode Investment |
| Bohai Leasing |
Nuode Investment and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Bohai Leasing
The main advantage of trading using opposite Nuode Investment and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Nuode Investment vs. Linktel Technologies Co | Nuode Investment vs. Jiangxi Naipu Mining | Nuode Investment vs. Huaibei Mining Holdings | Nuode Investment vs. Guocheng Mining Co |
| Bohai Leasing vs. Gansu Huangtai Wine marketing | Bohai Leasing vs. Fangda Special Steel | Bohai Leasing vs. Bengang Steel Plates | Bohai Leasing vs. Citic Guoan Wine |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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