Correlation Between Nuode Investment and Ningbo Tip
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By analyzing existing cross correlation between Nuode Investment Co and Ningbo Tip Rubber, you can compare the effects of market volatilities on Nuode Investment and Ningbo Tip 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 Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and Ningbo Tip.
Diversification Opportunities for Nuode Investment and Ningbo Tip
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuode and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Nuode Investment i.e., Nuode Investment and Ningbo Tip go up and down completely randomly.
Pair Corralation between Nuode Investment and Ningbo Tip
Assuming the 90 days trading horizon Nuode Investment Co is expected to generate 1.68 times more return on investment than Ningbo Tip. However, Nuode Investment is 1.68 times more volatile than Ningbo Tip Rubber. It trades about 0.17 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.16 per unit of risk. If you would invest 392.00 in Nuode Investment Co on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Nuode Investment Co or generate 16.07% 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. Ningbo Tip Rubber
Performance |
| Timeline |
| Nuode Investment |
| Ningbo Tip Rubber |
Nuode Investment and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and Ningbo Tip
The main advantage of trading using opposite Nuode Investment and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, Ningbo Tip 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 Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| Nuode Investment vs. Harbin Air Conditioning | Nuode Investment vs. Ningbo Homelink Eco iTech | Nuode Investment vs. Air China Ltd | Nuode Investment vs. Harbin Hatou Investment |
| Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. China Life Insurance |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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