Correlation Between Nuode Investment and Sinosteel Engineering
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By analyzing existing cross correlation between Nuode Investment Co and Sinosteel Engineering and, you can compare the effects of market volatilities on Nuode Investment and Sinosteel Engineering 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 Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Sinosteel Engineering.
Diversification Opportunities for Nuode Investment and Sinosteel Engineering
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuode and Sinosteel is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and 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 Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Nuode Investment i.e., Nuode Investment and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Nuode Investment and Sinosteel Engineering
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the Sinosteel Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Nuode Investment Co is 1.04 times less risky than Sinosteel Engineering. The stock trades about -0.04 of its potential returns per unit of risk. The Sinosteel Engineering and is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 572.00 in Sinosteel Engineering and on September 4, 2024 and sell it today you would earn a total of 142.00 from holding Sinosteel Engineering and or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. Sinosteel Engineering and
Performance |
| Timeline |
| Nuode Investment |
| Sinosteel Engineering and |
Nuode Investment and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Sinosteel Engineering
The main advantage of trading using opposite Nuode Investment and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Nuode Investment vs. Biwin Storage Technology | Nuode Investment vs. PetroChina Co Ltd | Nuode Investment vs. Industrial and Commercial | Nuode Investment vs. China Construction Bank |
| Sinosteel Engineering vs. China Life Insurance | Sinosteel Engineering vs. Cinda Securities Co | Sinosteel Engineering vs. Piotech Inc A | Sinosteel Engineering vs. Dongxing Sec 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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