Correlation Between Nanjing Putian and Tieling Newcity
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Tieling Newcity Investment, you can compare the effects of market volatilities on Nanjing Putian and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Tieling Newcity.
Diversification Opportunities for Nanjing Putian and Tieling Newcity
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Tieling is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Tieling Newcity go up and down completely randomly.
Pair Corralation between Nanjing Putian and Tieling Newcity
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.62 times more return on investment than Tieling Newcity. However, Nanjing Putian is 1.62 times more volatile than Tieling Newcity Investment. It trades about 0.12 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.17 per unit of risk. If you would invest 400.00 in Nanjing Putian Telecommunications on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Nanjing Putian Telecommunications or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Tieling Newcity Investment
Performance |
| Timeline |
| Nanjing Putian Telec |
| Tieling Newcity Inve |
Nanjing Putian and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Tieling Newcity
The main advantage of trading using opposite Nanjing Putian and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| Tieling Newcity vs. Fiberhome Telecommunication Technologies | Tieling Newcity vs. Tongyu Communication | Tieling Newcity vs. Eastern Communications Co | Tieling Newcity vs. Nanjing Putian Telecommunications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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