Correlation Between Nanjing Putian and Yankershop Food
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Yankershop Food Co, you can compare the effects of market volatilities on Nanjing Putian and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Yankershop Food.
Diversification Opportunities for Nanjing Putian and Yankershop Food
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Yankershop is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Yankershop Food go up and down completely randomly.
Pair Corralation between Nanjing Putian and Yankershop Food
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.46 times more return on investment than Yankershop Food. However, Nanjing Putian is 1.46 times more volatile than Yankershop Food Co. It trades about 0.03 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.02 per unit of risk. If you would invest 356.00 in Nanjing Putian Telecommunications on August 24, 2024 and sell it today you would earn a total of 92.00 from holding Nanjing Putian Telecommunications or generate 25.84% 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. Yankershop Food Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Yankershop Food |
Nanjing Putian and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Yankershop Food
The main advantage of trading using opposite Nanjing Putian and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Nanjing Putian vs. Ming Yang Smart | Nanjing Putian vs. 159005 | Nanjing Putian vs. Loctek Ergonomic Technology | Nanjing Putian vs. Xiamen East Asia |
| Yankershop Food vs. Shenzhen Glory Medical | Yankershop Food vs. Touchstone International Medical | Yankershop Food vs. Haima Automobile Group | Yankershop Food vs. Blue Sail Medical |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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