Correlation Between 5I5j Holding and Nanjing Putian
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By analyzing existing cross correlation between 5I5j Holding Group and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on 5I5j Holding and Nanjing Putian 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 5I5j Holding with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Nanjing Putian.
Diversification Opportunities for 5I5j Holding and Nanjing Putian
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5I5j and Nanjing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Nanjing Putian go up and down completely randomly.
Pair Corralation between 5I5j Holding and Nanjing Putian
Assuming the 90 days trading horizon 5I5j Holding Group is expected to generate 0.74 times more return on investment than Nanjing Putian. However, 5I5j Holding Group is 1.35 times less risky than Nanjing Putian. It trades about -0.08 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.1 per unit of risk. If you would invest 339.00 in 5I5j Holding Group on September 27, 2024 and sell it today you would lose (21.00) from holding 5I5j Holding Group or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
5I5j Holding Group vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| 5I5j Holding Group |
| Nanjing Putian Telec |
5I5j Holding and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5I5j Holding and Nanjing Putian
The main advantage of trading using opposite 5I5j Holding and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Nanjing Putian 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 Putian will offset losses from the drop in Nanjing Putian's long position.| 5I5j Holding vs. Nanjing Putian Telecommunications | 5I5j Holding vs. Guangdong Marubi Biotechnology | 5I5j Holding vs. Iat Automobile Technology | 5I5j Holding vs. Songz Automobile Air |
| Nanjing Putian vs. Sichuan Yahua Industrial | Nanjing Putian vs. Western Metal Materials | Nanjing Putian vs. Everjoy Health Group | Nanjing Putian vs. Jiangxi Selon Industrial |
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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