Correlation Between Beijing Sanyuan and Nuode Investment
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Nuode Investment Co, you can compare the effects of market volatilities on Beijing Sanyuan and Nuode Investment 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 Beijing Sanyuan with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Nuode Investment.
Diversification Opportunities for Beijing Sanyuan and Nuode Investment
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Nuode is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Beijing Sanyuan 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 Beijing Sanyuan Foods are associated (or correlated) with Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Beijing Sanyuan i.e., Beijing Sanyuan and Nuode Investment go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Nuode Investment
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to generate 0.6 times more return on investment than Nuode Investment. However, Beijing Sanyuan Foods is 1.66 times less risky than Nuode Investment. It trades about -0.01 of its potential returns per unit of risk. Nuode Investment Co is currently generating about -0.04 per unit of risk. If you would invest 534.00 in Beijing Sanyuan Foods on September 5, 2024 and sell it today you would lose (79.00) from holding Beijing Sanyuan Foods or give up 14.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Nuode Investment Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Nuode Investment |
Beijing Sanyuan and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Nuode Investment
The main advantage of trading using opposite Beijing Sanyuan and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Beijing Sanyuan vs. Xian International Medical | Beijing Sanyuan vs. Xinjiang Zhongtai Chemical | Beijing Sanyuan vs. Xilong Chemical Co | Beijing Sanyuan vs. North Huajin Chemical |
| Nuode Investment vs. Beijing Sanyuan Foods | Nuode Investment vs. Fujian Anjoy Foods | Nuode Investment vs. Shandong Huifa Foodstuff | Nuode Investment vs. Fiberhome Telecommunication Technologies |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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