Correlation Between Nanjing OLO and Yili Chuanning
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By analyzing existing cross correlation between Nanjing OLO Home and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Nanjing OLO and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Yili Chuanning.
Diversification Opportunities for Nanjing OLO and Yili Chuanning
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and Yili is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Yili Chuanning go up and down completely randomly.
Pair Corralation between Nanjing OLO and Yili Chuanning
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 1.92 times more return on investment than Yili Chuanning. However, Nanjing OLO is 1.92 times more volatile than Yili Chuanning Biotechnology. It trades about -0.05 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.12 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. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Nanjing OLO Home |
| Yili Chuanning Biote |
Nanjing OLO and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Yili Chuanning
The main advantage of trading using opposite Nanjing OLO and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning'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 |
| Yili Chuanning vs. Huizhou Speed Wireless | Yili Chuanning vs. Lontium Semiconductor Corp | Yili Chuanning vs. Southern PublishingMedia Co | Yili Chuanning vs. Shandong Publishing Media |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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