Correlation Between Nanjing Putian and China Vanke
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and China Vanke Co, you can compare the effects of market volatilities on Nanjing Putian and China Vanke 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 Nanjing Putian with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and China Vanke.
Diversification Opportunities for Nanjing Putian and China Vanke
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and China is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Nanjing Putian 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 Nanjing Putian Telecommunications are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and China Vanke go up and down completely randomly.
Pair Corralation between Nanjing Putian and China Vanke
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.23 times more return on investment than China Vanke. However, Nanjing Putian is 1.23 times more volatile than China Vanke Co. It trades about 0.34 of its potential returns per unit of risk. China Vanke Co is currently generating about 0.1 per unit of risk. If you would invest 159.00 in Nanjing Putian Telecommunications on September 5, 2024 and sell it today you would earn a total of 300.00 from holding Nanjing Putian Telecommunications or generate 188.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. China Vanke Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| China Vanke |
Nanjing Putian and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and China Vanke
The main advantage of trading using opposite Nanjing Putian and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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