Correlation Between Nanjing Putian and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Nanjing Putian and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Nanjing Putian and Zhengzhou Qianweiyangchu
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Zhengzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Nanjing Putian and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.36 times more return on investment than Zhengzhou Qianweiyangchu. However, Nanjing Putian is 1.36 times more volatile than Zhengzhou Qianweiyangchu Food. It trades about 0.02 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.01 per unit of risk. If you would invest 379.00 in Nanjing Putian Telecommunications on November 30, 2024 and sell it today you would earn a total of 4.00 from holding Nanjing Putian Telecommunications or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Nanjing Putian Telec |
| Zhengzhou Qianweiyangchu |
Nanjing Putian and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Nanjing Putian and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Cofoe Medical Technology | Nanjing Putian vs. Beijing Balance Medical | Nanjing Putian vs. Kontour Medical Technology |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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