Correlation Between Sichuan Jinshi and Nanjing Putian
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Nanjing Putian.
Diversification Opportunities for Sichuan Jinshi and Nanjing Putian
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Nanjing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 Sichuan Jinshi 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 Sichuan Jinshi Technology 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 Sichuan Jinshi i.e., Sichuan Jinshi and Nanjing Putian go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Nanjing Putian
Assuming the 90 days trading horizon Sichuan Jinshi is expected to generate 5.11 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Sichuan Jinshi Technology is 1.44 times less risky than Nanjing Putian. It trades about 0.01 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Nanjing Putian Telecommunications on August 25, 2024 and sell it today you would earn a total of 140.00 from holding Nanjing Putian Telecommunications or generate 47.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Nanjing Putian Telec |
Sichuan Jinshi and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Nanjing Putian
The main advantage of trading using opposite Sichuan Jinshi and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Beijing SPC Environment | Sichuan Jinshi vs. Ye Chiu Metal | Sichuan Jinshi vs. Jahen Household Products | Sichuan Jinshi vs. Shengda Mining Co |
| Nanjing Putian vs. Ming Yang Smart | Nanjing Putian vs. 159005 | Nanjing Putian vs. Loctek Ergonomic Technology | Nanjing Putian vs. Xiamen East Asia |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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