Correlation Between Nanjing Zhongbei and Union Pacific
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By analyzing existing cross correlation between Nanjing Zhongbei Group and Union Pacific, you can compare the effects of market volatilities on Nanjing Zhongbei and Union Pacific 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 Nanjing Zhongbei with a short position of Union Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Zhongbei and Union Pacific.
Diversification Opportunities for Nanjing Zhongbei and Union Pacific
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Union is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Zhongbei Group and Union Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Pacific and Nanjing Zhongbei 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 Nanjing Zhongbei Group are associated (or correlated) with Union Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Pacific has no effect on the direction of Nanjing Zhongbei i.e., Nanjing Zhongbei and Union Pacific go up and down completely randomly.
Pair Corralation between Nanjing Zhongbei and Union Pacific
Assuming the 90 days trading horizon Nanjing Zhongbei Group is expected to generate 3.02 times more return on investment than Union Pacific. However, Nanjing Zhongbei is 3.02 times more volatile than Union Pacific. It trades about 0.17 of its potential returns per unit of risk. Union Pacific is currently generating about -0.13 per unit of risk. If you would invest 690.00 in Nanjing Zhongbei Group on August 19, 2025 and sell it today you would earn a total of 75.00 from holding Nanjing Zhongbei Group or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Zhongbei Group vs. Union Pacific
Performance |
| Timeline |
| Nanjing Zhongbei |
| Union Pacific |
Nanjing Zhongbei and Union Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Zhongbei and Union Pacific
The main advantage of trading using opposite Nanjing Zhongbei and Union Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Zhongbei position performs unexpectedly, Union Pacific 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 Union Pacific will offset losses from the drop in Union Pacific's long position.| Nanjing Zhongbei vs. Kingclean Electric Co | Nanjing Zhongbei vs. Zhongshan Broad Ocean Motor | Nanjing Zhongbei vs. Guangxi Wuzhou Communications | Nanjing Zhongbei vs. Chengdu Xinzhu RoadBridge |
| Union Pacific vs. Honeywell International | Union Pacific vs. Norfolk Southern | Union Pacific vs. Deere Company | Union Pacific vs. Canadian National Railway |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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