Correlation Between Nuode Investment and Beijing New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nuode Investment Co and Beijing New Building, you can compare the effects of market volatilities on Nuode Investment and Beijing New 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Beijing New.
Diversification Opportunities for Nuode Investment and Beijing New
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuode and Beijing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Nuode Investment i.e., Nuode Investment and Beijing New go up and down completely randomly.
Pair Corralation between Nuode Investment and Beijing New
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the Beijing New. In addition to that, Nuode Investment is 1.35 times more volatile than Beijing New Building. It trades about -0.03 of its total potential returns per unit of risk. Beijing New Building is currently generating about 0.03 per unit of volatility. If you would invest 2,498 in Beijing New Building on September 12, 2024 and sell it today you would earn a total of 365.00 from holding Beijing New Building or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. Beijing New Building
Performance |
| Timeline |
| Nuode Investment |
| Beijing New Building |
Nuode Investment and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Beijing New
The main advantage of trading using opposite Nuode Investment and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Beijing New 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 Beijing New will offset losses from the drop in Beijing New's long position.| Nuode Investment vs. Agricultural Bank of | Nuode Investment vs. Industrial and Commercial | Nuode Investment vs. Bank of China | Nuode Investment vs. PetroChina Co Ltd |
| Beijing New vs. Huaxia Fund Management | Beijing New vs. Shaanxi Energy Investment | Beijing New vs. Nuode Investment Co | Beijing New vs. Hubei Geoway 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |