Correlation Between Nanjing Putian and Beijing New
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Beijing New Building, you can compare the effects of market volatilities on Nanjing Putian and Beijing New 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Beijing New.
Diversification Opportunities for Nanjing Putian and Beijing New
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Beijing New go up and down completely randomly.
Pair Corralation between Nanjing Putian and Beijing New
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.95 times more return on investment than Beijing New. However, Nanjing Putian is 2.95 times more volatile than Beijing New Building. It trades about 0.17 of its potential returns per unit of risk. Beijing New Building is currently generating about -0.29 per unit of risk. If you would invest 388.00 in Nanjing Putian Telecommunications on August 30, 2024 and sell it today you would earn a total of 60.00 from holding Nanjing Putian Telecommunications or generate 15.46% 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. Beijing New Building
Performance |
| Timeline |
| Nanjing Putian Telec |
| Beijing New Building |
Nanjing Putian and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Beijing New
The main advantage of trading using opposite Nanjing Putian and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Beijing New 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 Beijing New will offset losses from the drop in Beijing New's long position.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Bank of China | Nanjing Putian vs. China Construction Bank |
| Beijing New vs. Jilin Jlu Communication | Beijing New vs. Hainan Haiqi Transportation | Beijing New vs. Hubeiyichang Transportation Group | Beijing New vs. Heilongjiang Transport Development |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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