Correlation Between Nanjing Putian and Runjian Communication
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Runjian Communication Co, you can compare the effects of market volatilities on Nanjing Putian and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Runjian Communication.
Diversification Opportunities for Nanjing Putian and Runjian Communication
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nanjing and Runjian is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Runjian Communication go up and down completely randomly.
Pair Corralation between Nanjing Putian and Runjian Communication
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Runjian Communication. In addition to that, Nanjing Putian is 1.04 times more volatile than Runjian Communication Co. It trades about -0.14 of its total potential returns per unit of risk. Runjian Communication Co is currently generating about -0.07 per unit of volatility. If you would invest 3,183 in Runjian Communication Co on October 15, 2024 and sell it today you would lose (211.00) from holding Runjian Communication Co or give up 6.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Runjian Communication Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Runjian Communication |
Nanjing Putian and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Runjian Communication
The main advantage of trading using opposite Nanjing Putian and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Nanjing Putian vs. Fiberhome Telecommunication Technologies | Nanjing Putian vs. Anhui Xinhua Media | Nanjing Putian vs. Oppein Home Group | Nanjing Putian vs. Beijing Enlight Media |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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