Correlation Between Nanjing OLO and Jiangsu Seagull
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By analyzing existing cross correlation between Nanjing OLO Home and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Nanjing OLO and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing OLO and Jiangsu Seagull.
Diversification Opportunities for Nanjing OLO and Jiangsu Seagull
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing OLO Home and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Nanjing OLO i.e., Nanjing OLO and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Nanjing OLO and Jiangsu Seagull
Assuming the 90 days trading horizon Nanjing OLO Home is expected to generate 0.88 times more return on investment than Jiangsu Seagull. However, Nanjing OLO Home is 1.14 times less risky than Jiangsu Seagull. It trades about 0.12 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.09 per unit of risk. If you would invest 539.00 in Nanjing OLO Home on September 4, 2024 and sell it today you would earn a total of 146.00 from holding Nanjing OLO Home or generate 27.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing OLO Home vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Nanjing OLO Home |
| Jiangsu Seagull Cooling |
Nanjing OLO and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing OLO and Jiangsu Seagull
The main advantage of trading using opposite Nanjing OLO and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing OLO position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Nanjing OLO vs. Industrial and Commercial | Nanjing OLO vs. Agricultural Bank of | Nanjing OLO vs. China Construction Bank | Nanjing OLO vs. Bank of China |
| Jiangsu Seagull vs. Zhejiang Publishing Media | Jiangsu Seagull vs. Jiahe Foods Industry | Jiangsu Seagull vs. Guilin Seamild Foods | Jiangsu Seagull vs. Youyou Foods 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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