Correlation Between Nuode Investment and INKON Life
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By analyzing existing cross correlation between Nuode Investment Co and INKON Life Technology, you can compare the effects of market volatilities on Nuode Investment and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and INKON Life.
Diversification Opportunities for Nuode Investment and INKON Life
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuode and INKON is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Nuode Investment i.e., Nuode Investment and INKON Life go up and down completely randomly.
Pair Corralation between Nuode Investment and INKON Life
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the INKON Life. But the stock apears to be less risky and, when comparing its historical volatility, Nuode Investment Co is 1.04 times less risky than INKON Life. The stock trades about -0.05 of its potential returns per unit of risk. The INKON Life Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,153 in INKON Life Technology on October 12, 2024 and sell it today you would lose (277.00) from holding INKON Life Technology or give up 24.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. INKON Life Technology
Performance |
| Timeline |
| Nuode Investment |
| INKON Life Technology |
Nuode Investment and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and INKON Life
The main advantage of trading using opposite Nuode Investment and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Nuode Investment vs. Eyebright Medical Technology | Nuode Investment vs. Tinavi Medical Technologies | Nuode Investment vs. Huasi Agricultural Development | Nuode Investment vs. Qingdao Haier Biomedical |
| INKON Life vs. Guangdong Shenglu Telecommunication | INKON Life vs. Threes Company Media | INKON Life vs. Fiberhome Telecommunication Technologies | INKON Life vs. Sunwave Communications 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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