Correlation Between Dazhong Transportation and Nanjing OLO
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By analyzing existing cross correlation between Dazhong Transportation Group and Nanjing OLO Home, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Nanjing OLO.
Diversification Opportunities for Dazhong Transportation and Nanjing OLO
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dazhong and Nanjing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Nanjing OLO go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Nanjing OLO
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.48 times more return on investment than Nanjing OLO. However, Dazhong Transportation is 1.48 times more volatile than Nanjing OLO Home. It trades about 0.11 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about 0.04 per unit of risk. If you would invest 17.00 in Dazhong Transportation Group on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Dazhong Transportation Group or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Nanjing OLO Home
Performance |
| Timeline |
| Dazhong Transportation |
| Nanjing OLO Home |
Dazhong Transportation and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Nanjing OLO
The main advantage of trading using opposite Dazhong Transportation and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Cultural Investment Holdings | Dazhong Transportation vs. Gome Telecom Equipment | Dazhong Transportation vs. Bus Online Co | Dazhong Transportation vs. Holitech Technology Co |
| Nanjing OLO vs. Soyea Technology Co | Nanjing OLO vs. Kingclean Electric Co | Nanjing OLO vs. Marssenger Kitchenware Co | Nanjing OLO vs. Keda Clean Energy |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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