Correlation Between Shanghai Shuixing and Nanjing OLO
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shuixing Home and Nanjing OLO Home, you can compare the effects of market volatilities on Shanghai Shuixing and Nanjing OLO 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 Shanghai Shuixing with a short position of Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Nanjing OLO.
Diversification Opportunities for Shanghai Shuixing and Nanjing OLO
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Nanjing is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Nanjing OLO go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Nanjing OLO
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 4.21 times less return on investment than Nanjing OLO. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.14 times less risky than Nanjing OLO. It trades about 0.01 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Nanjing OLO Home on November 3, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing OLO Home or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Nanjing OLO Home
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Nanjing OLO Home |
Shanghai Shuixing and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Nanjing OLO
The main advantage of trading using opposite Shanghai Shuixing and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software Co |
| Nanjing OLO vs. Yindu Kitchen Equipment | Nanjing OLO vs. Bus Online Co | Nanjing OLO vs. Kontour Medical Technology | Nanjing OLO vs. Capitalonline Data Service |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |