Correlation Between 159005 and Nanjing Putian
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By analyzing existing cross correlation between 159005 and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Nanjing Putian.
Diversification Opportunities for 159005 and Nanjing Putian
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Nanjing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Nanjing Putian go up and down completely randomly.
Pair Corralation between 159005 and Nanjing Putian
Assuming the 90 days trading horizon 159005 is expected to generate 104.89 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, 159005 is 150.88 times less risky than Nanjing Putian. It trades about 0.22 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Nanjing Putian Telecommunications or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| 159005 |
| Nanjing Putian Telec |
159005 and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Nanjing Putian
The main advantage of trading using opposite 159005 and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Nanjing Putian Telecommunications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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