Correlation Between Nanjing Putian and Guangdong Qunxing
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Nanjing Putian and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Guangdong Qunxing.
Diversification Opportunities for Nanjing Putian and Guangdong Qunxing
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and Guangdong is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Nanjing Putian and Guangdong Qunxing
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.1 times more return on investment than Guangdong Qunxing. However, Nanjing Putian is 1.1 times more volatile than Guangdong Qunxing Toys. It trades about 0.1 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.29 per unit of risk. If you would invest 363.00 in Nanjing Putian Telecommunications on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Nanjing Putian Telecommunications or generate 6.89% 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. Guangdong Qunxing Toys
Performance |
| Timeline |
| Nanjing Putian Telec |
| Guangdong Qunxing Toys |
Nanjing Putian and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Guangdong Qunxing
The main advantage of trading using opposite Nanjing Putian and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Nanjing Putian vs. Sunny Loan Top | Nanjing Putian vs. Shengda Mining Co | Nanjing Putian vs. North Copper Shanxi | Nanjing Putian vs. Jiangsu Yueda Investment |
| Guangdong Qunxing vs. New China Life | Guangdong Qunxing vs. Ming Yang Smart | Guangdong Qunxing vs. 159681 | Guangdong Qunxing vs. 159005 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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