Correlation Between Northking Information and Nanjing Putian
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By analyzing existing cross correlation between Northking Information Technology and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Northking Information 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 Northking Information with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Nanjing Putian.
Diversification Opportunities for Northking Information and Nanjing Putian
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Nanjing is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo 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 Northking Information 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 Northking Information 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 Northking Information i.e., Northking Information and Nanjing Putian go up and down completely randomly.
Pair Corralation between Northking Information and Nanjing Putian
Assuming the 90 days trading horizon Northking Information is expected to generate 3.04 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Northking Information Technology is 1.33 times less risky than Nanjing Putian. It trades about 0.09 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Nanjing Putian Telecommunications on September 12, 2024 and sell it today you would earn a total of 289.00 from holding Nanjing Putian Telecommunications or generate 196.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Northking Information |
| Nanjing Putian Telec |
Northking Information and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Nanjing Putian
The main advantage of trading using opposite Northking Information and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information 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.| Northking Information vs. Gansu Jiu Steel | Northking Information vs. Shandong Mining Machinery | Northking Information vs. Aba Chemicals Corp | Northking Information vs. BlueFocus Communication Group |
| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian vs. BlueFocus Communication Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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