Correlation Between China Railway and Nuode Investment
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By analyzing existing cross correlation between China Railway Construction and Nuode Investment Co, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Nuode Investment.
Diversification Opportunities for China Railway and Nuode Investment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Nuode is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment and China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and Nuode Investment go up and down completely randomly.
Pair Corralation between China Railway and Nuode Investment
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.75 times more return on investment than Nuode Investment. However, China Railway Construction is 1.33 times less risky than Nuode Investment. It trades about 0.02 of its potential returns per unit of risk. Nuode Investment Co is currently generating about -0.05 per unit of risk. If you would invest 384.00 in China Railway Construction on October 7, 2024 and sell it today you would earn a total of 39.00 from holding China Railway Construction or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Nuode Investment Co
Performance |
| Timeline |
| China Railway Constr |
| Nuode Investment |
China Railway and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Nuode Investment
The main advantage of trading using opposite China Railway and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Penyao Environmental Protection | China Railway vs. Huatian Hotel Group | China Railway vs. Qiaoyin Environmental Tech | China Railway vs. Hangzhou Guotai Environmental |
| Nuode Investment vs. Holitech Technology Co | Nuode Investment vs. Changchun UP Optotech | Nuode Investment vs. Harbin Air Conditioning | Nuode Investment vs. Heilongjiang Publishing Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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