Correlation Between Nuode Investment and HOB Biotech
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By analyzing existing cross correlation between Nuode Investment Co and HOB Biotech Group, you can compare the effects of market volatilities on Nuode Investment and HOB Biotech 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 HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuode Investment and HOB Biotech.
Diversification Opportunities for Nuode Investment and HOB Biotech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuode and HOB is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nuode Investment Co and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group 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 HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Nuode Investment i.e., Nuode Investment and HOB Biotech go up and down completely randomly.
Pair Corralation between Nuode Investment and HOB Biotech
Assuming the 90 days trading horizon Nuode Investment Co is expected to under-perform the HOB Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Nuode Investment Co is 1.79 times less risky than HOB Biotech. The stock trades about -0.24 of its potential returns per unit of risk. The HOB Biotech Group is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 11,484 in HOB Biotech Group on October 11, 2024 and sell it today you would lose (2,634) from holding HOB Biotech Group or give up 22.94% 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. HOB Biotech Group
Performance |
| Timeline |
| Nuode Investment |
| HOB Biotech Group |
Nuode Investment and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuode Investment and HOB Biotech
The main advantage of trading using opposite Nuode Investment and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuode Investment position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Nuode Investment vs. China Petroleum Chemical | Nuode Investment vs. PetroChina Co Ltd | Nuode Investment vs. China State Construction | Nuode Investment vs. China Railway Group |
| HOB Biotech vs. Shannon Semiconductor Technology | HOB Biotech vs. ZYF Lopsking Aluminum | HOB Biotech vs. Suzhou Oriental Semiconductor | HOB Biotech vs. Guangdong Jingyi Metal |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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