Correlation Between Zoje Resources and Nanjing Putian
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By analyzing existing cross correlation between Zoje Resources Investment and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Nanjing Putian.
Diversification Opportunities for Zoje Resources and Nanjing Putian
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zoje and Nanjing is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment 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 Zoje Resources 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 Zoje Resources Investment 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 Zoje Resources i.e., Zoje Resources and Nanjing Putian go up and down completely randomly.
Pair Corralation between Zoje Resources and Nanjing Putian
Assuming the 90 days trading horizon Zoje Resources Investment is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Zoje Resources Investment is 1.4 times less risky than Nanjing Putian. The stock trades about -0.04 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Nanjing Putian Telecommunications on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Nanjing Putian Telecommunications or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Zoje Resources Investment |
| Nanjing Putian Telec |
Zoje Resources and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Nanjing Putian
The main advantage of trading using opposite Zoje Resources and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Beijing Jiaman Dress | Zoje Resources vs. Vohringer Home Technology | Zoje Resources vs. Shenzhen MYS Environmental | Zoje Resources vs. Shengyuan Environmental Protection |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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