Correlation Between Hunan Tyen and Nuode Investment
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By analyzing existing cross correlation between Hunan Tyen Machinery and Nuode Investment Co, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Nuode Investment.
Diversification Opportunities for Hunan Tyen and Nuode Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Nuode is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Nuode Investment go up and down completely randomly.
Pair Corralation between Hunan Tyen and Nuode Investment
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to under-perform the Nuode Investment. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Tyen Machinery is 1.05 times less risky than Nuode Investment. The stock trades about -0.06 of its potential returns per unit of risk. The Nuode Investment Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Nuode Investment Co on August 27, 2024 and sell it today you would earn a total of 69.00 from holding Nuode Investment Co or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Nuode Investment Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Nuode Investment |
Hunan Tyen and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Nuode Investment
The main advantage of trading using opposite Hunan Tyen and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. China State Construction | Hunan Tyen vs. Huafa Industrial Co | Hunan Tyen vs. China International Capital | Hunan Tyen vs. Kweichow Moutai Co |
| Nuode Investment vs. Humanwell Healthcare Group | Nuode Investment vs. China Reform Health | Nuode Investment vs. Hunan Tyen Machinery | Nuode Investment vs. Masterwork Machinery |
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 CEOs Directory module to screen CEOs from public companies around the world.
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