Correlation Between Nanjing OLO and Fangda Special
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By analyzing existing cross correlation between Nanjing OLO Home and Fangda Special Steel, you can compare the effects of market volatilities on Nanjing OLO and Fangda Special 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 Fangda Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Fangda Special.
Diversification Opportunities for Nanjing OLO and Fangda Special
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Fangda is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Fangda Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fangda Special Steel 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 Fangda Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fangda Special Steel has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Fangda Special go up and down completely randomly.
Pair Corralation between Nanjing OLO and Fangda Special
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 0.77 times more return on investment than Fangda Special. However, Nanjing OLO Home is 1.29 times less risky than Fangda Special. It trades about 0.07 of its potential returns per unit of risk. Fangda Special Steel is currently generating about 0.03 per unit of risk. If you would invest 615.00 in Nanjing OLO Home on October 30, 2024 and sell it today you would earn a total of 16.00 from holding Nanjing OLO Home or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Fangda Special Steel
Performance |
| Timeline |
| Nanjing OLO Home |
| Fangda Special Steel |
Nanjing OLO and Fangda Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Fangda Special
The main advantage of trading using opposite Nanjing OLO and Fangda Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Fangda Special 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 Fangda Special will offset losses from the drop in Fangda Special'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 |
| Fangda Special vs. Guangdong Wens Foodstuff | Fangda Special vs. Guangdong Liantai Environmental | Fangda Special vs. Anji Foodstuff Co | Fangda Special vs. Muyuan Foodstuff 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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