Correlation Between Nanjing Putian and Zhejiang Huatong
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Nanjing Putian and Zhejiang Huatong 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 Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Zhejiang Huatong.
Diversification Opportunities for Nanjing Putian and Zhejiang Huatong
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Zhejiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Nanjing Putian and Zhejiang Huatong
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.32 times more return on investment than Zhejiang Huatong. However, Nanjing Putian is 1.32 times more volatile than Zhejiang Huatong Meat. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about -0.02 per unit of risk. If you would invest 370.00 in Nanjing Putian Telecommunications on December 8, 2024 and sell it today you would earn a total of 22.00 from holding Nanjing Putian Telecommunications or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Zhejiang Huatong Meat
Performance |
| Timeline |
| Nanjing Putian Telec |
| Zhejiang Huatong Meat |
Nanjing Putian and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Zhejiang Huatong
The main advantage of trading using opposite Nanjing Putian and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Nanjing Putian vs. Jilin Chemical Fibre | Nanjing Putian vs. HeBei Jinniu Chemical | Nanjing Putian vs. Fangda Special Steel | Nanjing Putian vs. Elite Color Environmental |
| Zhejiang Huatong vs. Allied Machinery Co | Zhejiang Huatong vs. Yankershop Food Co | Zhejiang Huatong vs. Shantou Wanshun Package | Zhejiang Huatong vs. Lutian Machinery 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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