Correlation Between Nanjing Putian and Jiangsu Changfa
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Nanjing Putian and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jiangsu Changfa.
Diversification Opportunities for Nanjing Putian and Jiangsu Changfa
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Jiangsu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jiangsu Changfa
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.2 times more return on investment than Jiangsu Changfa. However, Nanjing Putian is 1.2 times more volatile than Jiangsu Changfa Refrigeration. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of risk. If you would invest 344.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 33.72% 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. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jiangsu Changfa Refr |
Nanjing Putian and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jiangsu Changfa
The main advantage of trading using opposite Nanjing Putian and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa'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 |
| Jiangsu Changfa vs. Postal Savings Bank | Jiangsu Changfa vs. Chahua Modern Housewares | Jiangsu Changfa vs. Harbin Hatou Investment | Jiangsu Changfa vs. MayAir 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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