Correlation Between Nanjing Putian and Ningbo Ligong
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Ningbo Ligong Online, you can compare the effects of market volatilities on Nanjing Putian and Ningbo Ligong 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 Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Ningbo Ligong.
Diversification Opportunities for Nanjing Putian and Ningbo Ligong
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Ningbo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Nanjing Putian and Ningbo Ligong
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.4 times more return on investment than Ningbo Ligong. However, Nanjing Putian is 2.4 times more volatile than Ningbo Ligong Online. It trades about 0.15 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.15 per unit of risk. If you would invest 400.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Nanjing Putian Telecommunications or generate 12.5% 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 Ligong Online
Performance |
| Timeline |
| Nanjing Putian Telec |
| Ningbo Ligong Online |
Nanjing Putian and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Ningbo Ligong
The main advantage of trading using opposite Nanjing Putian and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong's long position.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| Ningbo Ligong vs. Keli Sensing Technology | Ningbo Ligong vs. Heilongjiang Transport Development | Ningbo Ligong vs. Jinhe Biotechnology Co | Ningbo Ligong vs. Kangping Technology Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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