Correlation Between Nuode Investment and Xingguang Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nuode Investment Co and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Nuode Investment and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Xingguang Agricultural.
Diversification Opportunities for Nuode Investment and Xingguang Agricultural
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuode and Xingguang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Nuode Investment i.e., Nuode Investment and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Nuode Investment and Xingguang Agricultural
Assuming the 90 days trading horizon Nuode Investment Co is expected to generate 0.64 times more return on investment than Xingguang Agricultural. However, Nuode Investment Co is 1.56 times less risky than Xingguang Agricultural. It trades about -0.22 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.29 per unit of risk. If you would invest 421.00 in Nuode Investment Co on October 22, 2024 and sell it today you would lose (36.00) from holding Nuode Investment Co or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuode Investment Co vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Nuode Investment |
| Xingguang Agricultural |
Nuode Investment and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Xingguang Agricultural
The main advantage of trading using opposite Nuode Investment and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural'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 |
| Xingguang Agricultural vs. Unisplendour Corp | Xingguang Agricultural vs. Shanghai V Test Semiconductor | Xingguang Agricultural vs. Union Semiconductor Co | Xingguang Agricultural vs. Panda Financial Holding |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |