Correlation Between Nanjing OLO and Henan Shuanghui
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By analyzing existing cross correlation between Nanjing OLO Home and Henan Shuanghui Investment, you can compare the effects of market volatilities on Nanjing OLO and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Henan Shuanghui.
Diversification Opportunities for Nanjing OLO and Henan Shuanghui
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Henan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Nanjing OLO and Henan Shuanghui
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 1.51 times more return on investment than Henan Shuanghui. However, Nanjing OLO is 1.51 times more volatile than Henan Shuanghui Investment. It trades about 0.07 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.02 per unit of risk. If you would invest 642.00 in Nanjing OLO Home on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Nanjing OLO Home or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Nanjing OLO Home |
| Henan Shuanghui Inve |
Nanjing OLO and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Henan Shuanghui
The main advantage of trading using opposite Nanjing OLO and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Nanjing OLO vs. Agricultural Bank of | Nanjing OLO vs. Industrial and Commercial | Nanjing OLO vs. Bank of China | Nanjing OLO vs. China Construction Bank |
| Henan Shuanghui vs. Cofoe Medical Technology | Henan Shuanghui vs. Touchstone International Medical | Henan Shuanghui vs. Jiangsu Financial Leasing | Henan Shuanghui vs. Double Medical Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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