Correlation Between Nanjing Putian and 5I5j Holding
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and 5I5j Holding Group, you can compare the effects of market volatilities on Nanjing Putian and 5I5j Holding 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and 5I5j Holding.
Diversification Opportunities for Nanjing Putian and 5I5j Holding
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and 5I5j is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and 5I5j Holding go up and down completely randomly.
Pair Corralation between Nanjing Putian and 5I5j Holding
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 1.05 times less return on investment than 5I5j Holding. But when comparing it to its historical volatility, Nanjing Putian Telecommunications is 1.08 times less risky than 5I5j Holding. It trades about 0.02 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 270.00 in 5I5j Holding Group on October 15, 2024 and sell it today you would earn a total of 14.00 from holding 5I5j Holding Group or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. 5I5j Holding Group
Performance |
| Timeline |
| Nanjing Putian Telec |
| 5I5j Holding Group |
Nanjing Putian and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and 5I5j Holding
The main advantage of trading using opposite Nanjing Putian and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Nanjing Putian vs. Jiangsu Xinri E Vehicle | Nanjing Putian vs. Fuda Alloy Materials | Nanjing Putian vs. Suzhou Xingye Material | Nanjing Putian vs. Xiangyang Automobile Bearing |
| 5I5j Holding vs. Bohai Leasing Co | 5I5j Holding vs. Aluminum Corp of | 5I5j Holding vs. Shanghai Newtouch Software | 5I5j Holding vs. Zhejiang Yongjin Metal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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