Correlation Between Nuode Investment and Jiangxi Copper
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By analyzing existing cross correlation between Nuode Investment Co and Jiangxi Copper Co, you can compare the effects of market volatilities on Nuode Investment and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Jiangxi Copper.
Diversification Opportunities for Nuode Investment and Jiangxi Copper
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuode and Jiangxi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Nuode Investment i.e., Nuode Investment and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Nuode Investment and Jiangxi Copper
Assuming the 90 days trading horizon Nuode Investment Co is expected to generate 3.63 times more return on investment than Jiangxi Copper. However, Nuode Investment is 3.63 times more volatile than Jiangxi Copper Co. It trades about 0.16 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about -0.21 per unit of risk. If you would invest 392.00 in Nuode Investment Co on September 5, 2024 and sell it today you would earn a total of 65.00 from holding Nuode Investment Co or generate 16.58% 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. Jiangxi Copper Co
Performance |
| Timeline |
| Nuode Investment |
| Jiangxi Copper |
Nuode Investment and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Jiangxi Copper
The main advantage of trading using opposite Nuode Investment and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.| Nuode Investment vs. Beijing Sanyuan Foods | Nuode Investment vs. Fujian Anjoy Foods | Nuode Investment vs. Shandong Huifa Foodstuff | Nuode Investment vs. Fiberhome Telecommunication Technologies |
| Jiangxi Copper vs. Suzhou Mingzhi Technology | Jiangxi Copper vs. Guangzhou Ruoyuchen Information | Jiangxi Copper vs. Nanjing Putian Telecommunications | Jiangxi Copper vs. YLZ Information Tech |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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