Correlation Between Nanjing Putian and Shandong Xinhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Shandong Xinhua Pharmaceutical, you can compare the effects of market volatilities on Nanjing Putian and Shandong Xinhua 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 Shandong Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Shandong Xinhua.
Diversification Opportunities for Nanjing Putian and Shandong Xinhua
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Shandong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Shandong Xinhua Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Xinhua Phar 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 Shandong Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Xinhua Phar has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Shandong Xinhua go up and down completely randomly.
Pair Corralation between Nanjing Putian and Shandong Xinhua
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.41 times more return on investment than Shandong Xinhua. However, Nanjing Putian is 1.41 times more volatile than Shandong Xinhua Pharmaceutical. It trades about 0.04 of its potential returns per unit of risk. Shandong Xinhua Pharmaceutical is currently generating about -0.02 per unit of risk. If you would invest 344.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 104.00 from holding Nanjing Putian Telecommunications or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Shandong Xinhua Pharmaceutical
Performance |
| Timeline |
| Nanjing Putian Telec |
| Shandong Xinhua Phar |
Nanjing Putian and Shandong Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Shandong Xinhua
The main advantage of trading using opposite Nanjing Putian and Shandong Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Shandong Xinhua 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 Shandong Xinhua will offset losses from the drop in Shandong Xinhua's long position.| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
| Shandong Xinhua vs. Xiangyang Automobile Bearing | Shandong Xinhua vs. Wuhan Hvsen Biotechnology | Shandong Xinhua vs. Shandong Sino Agri United | Shandong Xinhua vs. Haima Automobile 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |