Correlation Between Nanjing Putian and Shenyang Huitian
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Nanjing Putian and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Shenyang Huitian.
Diversification Opportunities for Nanjing Putian and Shenyang Huitian
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Shenyang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Nanjing Putian and Shenyang Huitian
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.21 times more return on investment than Shenyang Huitian. However, Nanjing Putian is 1.21 times more volatile than Shenyang Huitian Thermal. It trades about 0.18 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.06 per unit of risk. If you would invest 199.00 in Nanjing Putian Telecommunications on November 2, 2024 and sell it today you would earn a total of 189.00 from holding Nanjing Putian Telecommunications or generate 94.97% 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. Shenyang Huitian Thermal
Performance |
| Timeline |
| Nanjing Putian Telec |
| Shenyang Huitian Thermal |
Nanjing Putian and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Shenyang Huitian
The main advantage of trading using opposite Nanjing Putian and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. Easyhome New Retail | Nanjing Putian vs. Anhui Deli Household | Nanjing Putian vs. New Hope Dairy |
| Shenyang Huitian vs. Rising Nonferrous Metals | Shenyang Huitian vs. Semiconductor Manufacturing Intl | Shenyang Huitian vs. Ye Chiu Metal | Shenyang Huitian vs. Aluminum Corp of |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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