Correlation Between Shanghai Yanpu and Nuode Investment
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Nuode Investment Co, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Nuode Investment.
Diversification Opportunities for Shanghai Yanpu and Nuode Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Nuode is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and Shanghai Yanpu 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 Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and Nuode Investment go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Nuode Investment
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.81 times more return on investment than Nuode Investment. However, Shanghai Yanpu Metal is 1.23 times less risky than Nuode Investment. It trades about -0.06 of its potential returns per unit of risk. Nuode Investment Co is currently generating about -0.12 per unit of risk. If you would invest 3,698 in Shanghai Yanpu Metal on November 3, 2024 and sell it today you would lose (71.00) from holding Shanghai Yanpu Metal or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Nuode Investment Co
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Nuode Investment |
Shanghai Yanpu and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Nuode Investment
The main advantage of trading using opposite Shanghai Yanpu and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. Industrial and Commercial | Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. China Construction Bank | Shanghai Yanpu vs. Bank of China |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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