Correlation Between Nanjing Putian and TongFu Microelectronics
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and TongFu Microelectronics Co, you can compare the effects of market volatilities on Nanjing Putian and TongFu Microelectronics 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 TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and TongFu Microelectronics.
Diversification Opportunities for Nanjing Putian and TongFu Microelectronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and TongFu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics 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 TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Nanjing Putian and TongFu Microelectronics
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.35 times more return on investment than TongFu Microelectronics. However, Nanjing Putian is 1.35 times more volatile than TongFu Microelectronics Co. It trades about -0.01 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.01 per unit of risk. If you would invest 403.00 in Nanjing Putian Telecommunications on October 20, 2024 and sell it today you would lose (12.00) from holding Nanjing Putian Telecommunications or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| TongFu Microelectronics |
Nanjing Putian and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and TongFu Microelectronics
The main advantage of trading using opposite Nanjing Putian and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Nanjing Putian vs. Kangping Technology Co | Nanjing Putian vs. XiaMen HongXin Electron tech | Nanjing Putian vs. Guangzhou Haige Communications | Nanjing Putian vs. Holitech Technology Co |
| TongFu Microelectronics vs. Shanghai Xinhua Media | TongFu Microelectronics vs. Thinkingdom Media Group | TongFu Microelectronics vs. Ligao Foods CoLtd | TongFu Microelectronics vs. Citic Guoan Wine |
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 CEOs Directory module to screen CEOs from public companies around the world.
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