Correlation Between Zhejiang JIULI and Nanjing Putian
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Nanjing Putian.
Diversification Opportunities for Zhejiang JIULI and Nanjing Putian
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Nanjing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech 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 Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Nanjing Putian go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Nanjing Putian
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 3.46 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 2.17 times less risky than Nanjing Putian. It trades about 0.06 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 173.00 in Nanjing Putian Telecommunications on October 18, 2024 and sell it today you would earn a total of 199.00 from holding Nanjing Putian Telecommunications or generate 115.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Nanjing Putian Telec |
Zhejiang JIULI and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Nanjing Putian
The main advantage of trading using opposite Zhejiang JIULI and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Cansino Biologics | Zhejiang JIULI vs. Runjian Communication Co | Zhejiang JIULI vs. Dareway Software Co | Zhejiang JIULI vs. Beijing Bewinner Communications |
| Nanjing Putian vs. Western Metal Materials | Nanjing Putian vs. Orinko Advanced Plastics | Nanjing Putian vs. Sanxiang Advanced Materials | Nanjing Putian vs. Lontium Semiconductor Corp |
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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