Correlation Between Shenzhen New and Nanjing Putian
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By analyzing existing cross correlation between Shenzhen New Nanshan and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shenzhen New 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 New with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and Nanjing Putian.
Diversification Opportunities for Shenzhen New and Nanjing Putian
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Nanjing is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan 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 New 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 New Nanshan 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 New i.e., Shenzhen New and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shenzhen New and Nanjing Putian
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen New Nanshan is 2.47 times less risky than Nanjing Putian. The stock trades about -0.22 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Nanjing Putian Telecommunications on October 23, 2024 and sell it today you would lose (23.00) from holding Nanjing Putian Telecommunications or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shenzhen New Nanshan |
| Nanjing Putian Telec |
Shenzhen New and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and Nanjing Putian
The main advantage of trading using opposite Shenzhen New and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New 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 New vs. Allwin Telecommunication Co | Shenzhen New vs. Guangzhou Dongfang Hotel | Shenzhen New vs. Bohai Leasing Co | Shenzhen New vs. Eastern Communications Co |
| Nanjing Putian vs. Jiangsu GDK Biotechnology | Nanjing Putian vs. Maccura Biotechnology Co | Nanjing Putian vs. Zoje Resources Investment | Nanjing Putian vs. Sichuan Hebang Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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