Correlation Between Nanjing Putian and Fujian Newland
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Fujian Newland Computer, you can compare the effects of market volatilities on Nanjing Putian and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Fujian Newland.
Diversification Opportunities for Nanjing Putian and Fujian Newland
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Fujian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Fujian Newland go up and down completely randomly.
Pair Corralation between Nanjing Putian and Fujian Newland
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.12 times more return on investment than Fujian Newland. However, Nanjing Putian is 1.12 times more volatile than Fujian Newland Computer. It trades about 0.41 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.16 per unit of risk. If you would invest 220.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 219.00 from holding Nanjing Putian Telecommunications or generate 99.55% 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. Fujian Newland Computer
Performance |
| Timeline |
| Nanjing Putian Telec |
| Fujian Newland Computer |
Nanjing Putian and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Fujian Newland
The main advantage of trading using opposite Nanjing Putian and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland'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 |
| Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Bank of China | Fujian Newland vs. PetroChina Co Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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