Correlation Between Nanjing OLO and Shenzhen Silver
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By analyzing existing cross correlation between Nanjing OLO Home and Shenzhen Silver Basis, you can compare the effects of market volatilities on Nanjing OLO and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Shenzhen Silver.
Diversification Opportunities for Nanjing OLO and Shenzhen Silver
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and Shenzhen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Nanjing OLO and Shenzhen Silver
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 1.13 times more return on investment than Shenzhen Silver. However, Nanjing OLO is 1.13 times more volatile than Shenzhen Silver Basis. It trades about -0.05 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.19 per unit of risk. If you would invest 692.00 in Nanjing OLO Home on October 30, 2024 and sell it today you would lose (61.00) from holding Nanjing OLO Home or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Nanjing OLO Home |
| Shenzhen Silver Basis |
Nanjing OLO and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Shenzhen Silver
The main advantage of trading using opposite Nanjing OLO and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Nanjing OLO vs. Shenzhen Centralcon Investment | Nanjing OLO vs. Sanbo Hospital Management | Nanjing OLO vs. Harbin Air Conditioning | Nanjing OLO vs. China Eastern Airlines |
| Shenzhen Silver vs. Uroica Mining Safety | Shenzhen Silver vs. Xinjiang Baodi Mining | Shenzhen Silver vs. Bosera CMSK Industrial | Shenzhen Silver vs. Gem Year Industrial Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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