Correlation Between Shenzhen Hifuture and Nanjing Putian
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Nanjing Putian.
Diversification Opportunities for Shenzhen Hifuture and Nanjing Putian
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Nanjing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Nanjing Putian
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.72 times more return on investment than Nanjing Putian. However, Shenzhen Hifuture Electric is 1.4 times less risky than Nanjing Putian. It trades about 0.28 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.12 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Shenzhen Hifuture Electric or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shenzhen Hifuture |
| Nanjing Putian Telec |
Shenzhen Hifuture and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Nanjing Putian
The main advantage of trading using opposite Shenzhen Hifuture and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Shanghai Xinhua Media | Shenzhen Hifuture vs. Inly Media Co | Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Threes Company Media |
| Nanjing Putian vs. China State Construction | Nanjing Putian vs. Huafa Industrial Co | Nanjing Putian vs. China International Capital | Nanjing Putian vs. Kweichow Moutai 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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