Correlation Between Nanjing Putian and Songz Automobile
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Songz Automobile Air, you can compare the effects of market volatilities on Nanjing Putian and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Songz Automobile.
Diversification Opportunities for Nanjing Putian and Songz Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Songz is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Songz Automobile go up and down completely randomly.
Pair Corralation between Nanjing Putian and Songz Automobile
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.61 times more return on investment than Songz Automobile. However, Nanjing Putian is 1.61 times more volatile than Songz Automobile Air. It trades about 0.12 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.13 per unit of risk. If you would invest 400.00 in Nanjing Putian Telecommunications on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Nanjing Putian Telecommunications or generate 9.75% 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. Songz Automobile Air
Performance |
| Timeline |
| Nanjing Putian Telec |
| Songz Automobile Air |
Nanjing Putian and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Songz Automobile
The main advantage of trading using opposite Nanjing Putian and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Nanjing Putian vs. China State Construction | Nanjing Putian vs. Huafa Industrial Co | Nanjing Putian vs. China International Capital | Nanjing Putian vs. Kweichow Moutai Co |
| Songz Automobile vs. Agricultural Bank of | Songz Automobile vs. Industrial and Commercial | Songz Automobile vs. Bank of China | Songz Automobile vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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