Correlation Between Nanjing Putian and Changzhou Almaden
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Changzhou Almaden Co, you can compare the effects of market volatilities on Nanjing Putian and Changzhou Almaden 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 Changzhou Almaden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Changzhou Almaden.
Diversification Opportunities for Nanjing Putian and Changzhou Almaden
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Changzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Changzhou Almaden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Almaden 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 Changzhou Almaden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Almaden has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Changzhou Almaden go up and down completely randomly.
Pair Corralation between Nanjing Putian and Changzhou Almaden
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.93 times more return on investment than Changzhou Almaden. However, Nanjing Putian is 1.93 times more volatile than Changzhou Almaden Co. It trades about 0.12 of its potential returns per unit of risk. Changzhou Almaden Co is currently generating about -0.21 per unit of risk. If you would invest 400.00 in Nanjing Putian Telecommunications on August 27, 2024 and sell it today you would earn a total of 37.00 from holding Nanjing Putian Telecommunications or generate 9.25% 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. Changzhou Almaden Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Changzhou Almaden |
Nanjing Putian and Changzhou Almaden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Changzhou Almaden
The main advantage of trading using opposite Nanjing Putian and Changzhou Almaden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Changzhou Almaden 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 Changzhou Almaden will offset losses from the drop in Changzhou Almaden's long position.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| Changzhou Almaden vs. ChengDu Hi Tech Development | Changzhou Almaden vs. Inly Media Co | Changzhou Almaden vs. Nanjing Putian Telecommunications | Changzhou Almaden vs. Shanghai Yaoji Playing |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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