Correlation Between Nanjing Putian and Ningbo Kangqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Nanjing Putian and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Ningbo Kangqiang.
Diversification Opportunities for Nanjing Putian and Ningbo Kangqiang
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Ningbo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Nanjing Putian and Ningbo Kangqiang
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.17 times more return on investment than Ningbo Kangqiang. However, Nanjing Putian is 1.17 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.2 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.11 per unit of risk. If you would invest 157.00 in Nanjing Putian Telecommunications on October 26, 2024 and sell it today you would earn a total of 237.00 from holding Nanjing Putian Telecommunications or generate 150.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Nanjing Putian Telec |
| Ningbo Kangqiang Ele |
Nanjing Putian and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Ningbo Kangqiang
The main advantage of trading using opposite Nanjing Putian and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Nanjing Putian vs. Inspur Software Co | Nanjing Putian vs. Thunder Software Technology | Nanjing Putian vs. Sichuan Teway Food | Nanjing Putian vs. China National Software |
| Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Shenzhen Coship Electronics | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |