Correlation Between Nuode Investment and China Railway
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By analyzing existing cross correlation between Nuode Investment Co and China Railway Construction, you can compare the effects of market volatilities on Nuode Investment and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and China Railway.
Diversification Opportunities for Nuode Investment and China Railway
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuode and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Nuode Investment i.e., Nuode Investment and China Railway go up and down completely randomly.
Pair Corralation between Nuode Investment and China Railway
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the China Railway. In addition to that, Nuode Investment is 1.33 times more volatile than China Railway Construction. It trades about -0.22 of its total potential returns per unit of risk. China Railway Construction is currently generating about -0.28 per unit of volatility. If you would invest 452.00 in China Railway Construction on October 22, 2024 and sell it today you would lose (37.00) from holding China Railway Construction or give up 8.19% 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. China Railway Construction
Performance |
| Timeline |
| Nuode Investment |
| China Railway Constr |
Nuode Investment and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and China Railway
The main advantage of trading using opposite Nuode Investment and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway'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 |
| China Railway vs. Guangdong Silvere Sci | China Railway vs. Shenyang Blue Silver | China Railway vs. Jinsanjiang Silicon Material | China Railway vs. Jinhui Mining 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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