Correlation Between Nanjing Putian and Cloud Live
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Cloud Live Technology, you can compare the effects of market volatilities on Nanjing Putian and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Cloud Live.
Diversification Opportunities for Nanjing Putian and Cloud Live
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Cloud is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Cloud Live go up and down completely randomly.
Pair Corralation between Nanjing Putian and Cloud Live
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.88 times more return on investment than Cloud Live. However, Nanjing Putian Telecommunications is 1.14 times less risky than Cloud Live. It trades about -0.18 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.51 per unit of risk. If you would invest 428.00 in Nanjing Putian Telecommunications on October 14, 2024 and sell it today you would lose (65.00) from holding Nanjing Putian Telecommunications or give up 15.19% 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. Cloud Live Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Cloud Live Technology |
Nanjing Putian and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Cloud Live
The main advantage of trading using opposite Nanjing Putian and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Nanjing Putian vs. GRINM Semiconductor Materials | Nanjing Putian vs. HaiXin Foods Co | Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. GigaDevice SemiconductorBeiji |
| Cloud Live vs. Holitech Technology Co | Cloud Live vs. Zotye Automobile Co | Cloud Live vs. Bus Online Co | Cloud Live vs. Cultural Investment Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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