Correlation Between Nanjing Putian and Ciwen Media
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Ciwen Media Co, you can compare the effects of market volatilities on Nanjing Putian and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Ciwen Media.
Diversification Opportunities for Nanjing Putian and Ciwen Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Ciwen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Ciwen Media go up and down completely randomly.
Pair Corralation between Nanjing Putian and Ciwen Media
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.33 times more return on investment than Ciwen Media. However, Nanjing Putian is 1.33 times more volatile than Ciwen Media Co. It trades about 0.21 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.07 per unit of risk. If you would invest 154.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 306.00 from holding Nanjing Putian Telecommunications or generate 198.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Ciwen Media Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Ciwen Media |
Nanjing Putian and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Ciwen Media
The main advantage of trading using opposite Nanjing Putian and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
| Ciwen Media vs. Lutian Machinery Co | Ciwen Media vs. China Longyuan Power | Ciwen Media vs. PetroChina Co Ltd | Ciwen Media vs. Bank of China |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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