Correlation Between Nuode Investment and Sinomach General
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By analyzing existing cross correlation between Nuode Investment Co and Sinomach General Machinery, you can compare the effects of market volatilities on Nuode Investment and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Sinomach General.
Diversification Opportunities for Nuode Investment and Sinomach General
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuode and Sinomach is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Nuode Investment i.e., Nuode Investment and Sinomach General go up and down completely randomly.
Pair Corralation between Nuode Investment and Sinomach General
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Nuode Investment Co is 1.08 times less risky than Sinomach General. The stock trades about -0.22 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,525 in Sinomach General Machinery on October 22, 2024 and sell it today you would lose (31.00) from holding Sinomach General Machinery or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Nuode Investment |
| Sinomach General Mac |
Nuode Investment and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Sinomach General
The main advantage of trading using opposite Nuode Investment and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Nuode Investment vs. Shenzhen Noposion Agrochemicals | Nuode Investment vs. Jinsanjiang Silicon Material | Nuode Investment vs. Leyard Optoelectronic | Nuode Investment vs. TongFu Microelectronics Co |
| Sinomach General vs. Jahen Household Products | Sinomach General vs. Pengxin International Mining | Sinomach General vs. Xinjiang Baodi Mining | Sinomach General vs. Shandong Polymer Biochemicals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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