Correlation Between Nanjing Putian and Double Medical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Double Medical Technology, you can compare the effects of market volatilities on Nanjing Putian and Double Medical 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 Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Double Medical.
Diversification Opportunities for Nanjing Putian and Double Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Double is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology 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 Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Double Medical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Double Medical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.33 times more return on investment than Double Medical. However, Nanjing Putian is 1.33 times more volatile than Double Medical Technology. It trades about 0.03 of its potential returns per unit of risk. Double Medical Technology is currently generating about 0.0 per unit of risk. If you would invest 344.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 33.72% 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. Double Medical Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Double Medical Technology |
Nanjing Putian and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Double Medical
The main advantage of trading using opposite Nanjing Putian and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Double Medical 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 Double Medical will offset losses from the drop in Double Medical's long position.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
| Double Medical vs. Chengdu Kanghua Biological | Double Medical vs. Beijing Wantai Biological | Double Medical vs. Suzhou Novoprotein Scientific | Double Medical vs. Aluminum Corp of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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