Correlation Between Xingguang Agricultural and Nuode Investment
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Nuode Investment Co, you can compare the effects of market volatilities on Xingguang Agricultural and Nuode Investment 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 Xingguang Agricultural with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Nuode Investment.
Diversification Opportunities for Xingguang Agricultural and Nuode Investment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xingguang and Nuode is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Nuode Investment go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Nuode Investment
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to under-perform the Nuode Investment. In addition to that, Xingguang Agricultural is 1.56 times more volatile than Nuode Investment Co. It trades about -0.29 of its total potential returns per unit of risk. Nuode Investment Co is currently generating about -0.22 per unit of volatility. If you would invest 421.00 in Nuode Investment Co on October 22, 2024 and sell it today you would lose (36.00) from holding Nuode Investment Co or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Nuode Investment Co
Performance |
| Timeline |
| Xingguang Agricultural |
| Nuode Investment |
Xingguang Agricultural and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Nuode Investment
The main advantage of trading using opposite Xingguang Agricultural and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Xingguang Agricultural vs. Unisplendour Corp | Xingguang Agricultural vs. Shanghai V Test Semiconductor | Xingguang Agricultural vs. Union Semiconductor Co | Xingguang Agricultural vs. Panda Financial Holding |
| Nuode Investment vs. Shenzhen Noposion Agrochemicals | Nuode Investment vs. Jinsanjiang Silicon Material | Nuode Investment vs. Leyard Optoelectronic | Nuode Investment vs. TongFu Microelectronics 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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