Correlation Between Zhengzhou Qianweiyangchu and Nanjing Putian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Nanjing Putian.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Nanjing Putian
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Nanjing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Nanjing Putian go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Nanjing Putian
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to generate 1.08 times more return on investment than Nanjing Putian. However, Zhengzhou Qianweiyangchu is 1.08 times more volatile than Nanjing Putian Telecommunications. It trades about 0.25 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.03 per unit of risk. If you would invest 2,718 in Zhengzhou Qianweiyangchu Food on December 1, 2024 and sell it today you would earn a total of 320.00 from holding Zhengzhou Qianweiyangchu Food or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Nanjing Putian Telec |
Zhengzhou Qianweiyangchu and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Nanjing Putian
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu 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.| Zhengzhou Qianweiyangchu vs. Youyou Foods Co | Zhengzhou Qianweiyangchu vs. Ningbo Ligong Online | Zhengzhou Qianweiyangchu vs. CIMC Vehicles Co | Zhengzhou Qianweiyangchu vs. Qingdao Foods Co |
| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Cofoe Medical Technology | Nanjing Putian vs. Beijing Balance Medical | Nanjing Putian vs. Kontour Medical Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |