Correlation Between Nanjing Putian and Hunan Mendale
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Nanjing Putian and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Hunan Mendale.
Diversification Opportunities for Nanjing Putian and Hunan Mendale
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Hunan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Hunan Mendale go up and down completely randomly.
Pair Corralation between Nanjing Putian and Hunan Mendale
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Hunan Mendale. In addition to that, Nanjing Putian is 1.65 times more volatile than Hunan Mendale Hometextile. It trades about -0.08 of its total potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.32 per unit of volatility. If you would invest 279.00 in Hunan Mendale Hometextile on September 14, 2024 and sell it today you would earn a total of 62.00 from holding Hunan Mendale Hometextile or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Nanjing Putian Telec |
| Hunan Mendale Hometextile |
Nanjing Putian and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Hunan Mendale
The main advantage of trading using opposite Nanjing Putian and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
| Hunan Mendale vs. Nanjing Putian Telecommunications | Hunan Mendale vs. Tianjin Realty Development | Hunan Mendale vs. Kangyue Technology Co | Hunan Mendale vs. Shenzhen Hifuture Electric |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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