Correlation Between Nanjing OLO and Vanfund Urban
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By analyzing existing cross correlation between Nanjing OLO Home and Vanfund Urban Investment, you can compare the effects of market volatilities on Nanjing OLO and Vanfund Urban 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 Nanjing OLO with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Vanfund Urban.
Diversification Opportunities for Nanjing OLO and Vanfund Urban
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Vanfund is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Nanjing OLO 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 Nanjing OLO Home are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Vanfund Urban go up and down completely randomly.
Pair Corralation between Nanjing OLO and Vanfund Urban
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 0.67 times more return on investment than Vanfund Urban. However, Nanjing OLO Home is 1.5 times less risky than Vanfund Urban. It trades about 0.17 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.03 per unit of risk. If you would invest 644.00 in Nanjing OLO Home on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Nanjing OLO Home or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Vanfund Urban Investment
Performance |
| Timeline |
| Nanjing OLO Home |
| Vanfund Urban Investment |
Nanjing OLO and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Vanfund Urban
The main advantage of trading using opposite Nanjing OLO and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Nanjing OLO vs. Lutian Machinery Co | Nanjing OLO vs. PetroChina Co Ltd | Nanjing OLO vs. Bank of China | Nanjing OLO vs. Gansu Jiu Steel |
| Vanfund Urban vs. Agricultural Bank of | Vanfund Urban vs. Industrial and Commercial | Vanfund Urban vs. Bank of China | Vanfund Urban vs. PetroChina Co Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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