Correlation Between Shenyang Huitian and Nanjing Putian
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Nanjing Putian.
Diversification Opportunities for Shenyang Huitian and Nanjing Putian
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Nanjing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Nanjing Putian
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.48 times less risky than Nanjing Putian. The stock trades about -0.35 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Nanjing Putian Telecommunications on October 20, 2024 and sell it today you would lose (12.00) from holding Nanjing Putian Telecommunications or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Nanjing Putian Telec |
Shenyang Huitian and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Nanjing Putian
The main advantage of trading using opposite Shenyang Huitian and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Sichuan Yahua Industrial | Shenyang Huitian vs. Gem Year Industrial Co | Shenyang Huitian vs. Lonkey Industrial Co | Shenyang Huitian vs. Anhui Jinhe Industrial |
| Nanjing Putian vs. Kangping Technology Co | Nanjing Putian vs. XiaMen HongXin Electron tech | Nanjing Putian vs. Guangzhou Haige Communications | Nanjing Putian vs. Holitech Technology Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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