Correlation Between Nanjing Putian and Guocheng Mining
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Guocheng Mining Co, you can compare the effects of market volatilities on Nanjing Putian and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Guocheng Mining.
Diversification Opportunities for Nanjing Putian and Guocheng Mining
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Guocheng is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Guocheng Mining go up and down completely randomly.
Pair Corralation between Nanjing Putian and Guocheng Mining
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.5 times more return on investment than Guocheng Mining. However, Nanjing Putian is 1.5 times more volatile than Guocheng Mining Co. It trades about 0.11 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.01 per unit of risk. If you would invest 360.00 in Nanjing Putian Telecommunications on November 1, 2024 and sell it today you would earn a total of 28.00 from holding Nanjing Putian Telecommunications or generate 7.78% 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. Guocheng Mining Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Guocheng Mining |
Nanjing Putian and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Guocheng Mining
The main advantage of trading using opposite Nanjing Putian and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Nanjing Putian vs. Vanfund Urban Investment | Nanjing Putian vs. Xiangyang Automobile Bearing | Nanjing Putian vs. Jointo Energy Investment | Nanjing Putian vs. Xiamen Insight Investment |
| Guocheng Mining vs. Guotai Epoint Software | Guocheng Mining vs. TianJin 712 Communication | Guocheng Mining vs. Beijing Yanjing Brewery | Guocheng Mining vs. Eastroc Beverage 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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