Correlation Between Nanjing Putian and Anhui Gujing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Anhui Gujing Distillery, you can compare the effects of market volatilities on Nanjing Putian and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Anhui Gujing.
Diversification Opportunities for Nanjing Putian and Anhui Gujing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Anhui is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Anhui Gujing go up and down completely randomly.
Pair Corralation between Nanjing Putian and Anhui Gujing
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.18 times more return on investment than Anhui Gujing. However, Nanjing Putian is 2.18 times more volatile than Anhui Gujing Distillery. It trades about 0.34 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.01 per unit of risk. If you would invest 318.00 in Nanjing Putian Telecommunications on November 7, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 22.01% 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. Anhui Gujing Distillery
Performance |
| Timeline |
| Nanjing Putian Telec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anhui Gujing Distillery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nanjing Putian and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Anhui Gujing
The main advantage of trading using opposite Nanjing Putian and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.The idea behind Nanjing Putian Telecommunications and Anhui Gujing Distillery 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.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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |