Correlation Between Nanjing Putian and Central China
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Central China Land, you can compare the effects of market volatilities on Nanjing Putian and Central China 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 Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Central China.
Diversification Opportunities for Nanjing Putian and Central China
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanjing and Central is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land 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 Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Central China go up and down completely randomly.
Pair Corralation between Nanjing Putian and Central China
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.87 times more return on investment than Central China. However, Nanjing Putian is 1.87 times more volatile than Central China Land. It trades about 0.19 of its potential returns per unit of risk. Central China Land is currently generating about 0.06 per unit of risk. If you would invest 160.00 in Nanjing Putian Telecommunications on November 3, 2024 and sell it today you would earn a total of 228.00 from holding Nanjing Putian Telecommunications or generate 142.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Central China Land
Performance |
| Timeline |
| Nanjing Putian Telec |
| Central China Land |
Nanjing Putian and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Central China
The main advantage of trading using opposite Nanjing Putian and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Nanjing Putian vs. Guangzhou Restaurants Group | Nanjing Putian vs. Chongqing Brewery Co | Nanjing Putian vs. Zijin Mining Group | Nanjing Putian vs. Beijing Yanjing Brewery |
| Central China vs. Xinjiang Communications Construction | Central China vs. Nanjing Putian Telecommunications | Central China vs. CICT Mobile Communication | Central China vs. Allwin Telecommunication Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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