Correlation Between Nanjing Putian and Guangdong Jingyi
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Nanjing Putian and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Guangdong Jingyi.
Diversification Opportunities for Nanjing Putian and Guangdong Jingyi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Guangdong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Nanjing Putian and Guangdong Jingyi
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.46 times more return on investment than Guangdong Jingyi. However, Nanjing Putian is 1.46 times more volatile than Guangdong Jingyi Metal. It trades about 0.06 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.08 per unit of risk. If you would invest 385.00 in Nanjing Putian Telecommunications on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Nanjing Putian Telecommunications or generate 3.38% 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. Guangdong Jingyi Metal
Performance |
| Timeline |
| Nanjing Putian Telec |
| Guangdong Jingyi Metal |
Nanjing Putian and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Guangdong Jingyi
The main advantage of trading using opposite Nanjing Putian and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Nanjing Putian vs. Bus Online Co | Nanjing Putian vs. Holitech Technology Co | Nanjing Putian vs. Gome Telecom Equipment | Nanjing Putian vs. Cultural Investment Holdings |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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