Correlation Between Nanjing Putian and Sichuan Jinshi
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Nanjing Putian and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sichuan Jinshi.
Diversification Opportunities for Nanjing Putian and Sichuan Jinshi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Sichuan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sichuan Jinshi
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.66 times more return on investment than Sichuan Jinshi. However, Nanjing Putian is 1.66 times more volatile than Sichuan Jinshi Technology. It trades about 0.41 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.3 per unit of risk. If you would invest 220.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 219.00 from holding Nanjing Putian Telecommunications or generate 99.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sichuan Jinshi Technology |
Nanjing Putian and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sichuan Jinshi
The main advantage of trading using opposite Nanjing Putian and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi'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 |
| Sichuan Jinshi vs. HaiXin Foods Co | Sichuan Jinshi vs. State Grid InformationCommunication | Sichuan Jinshi vs. Liuzhou Chemical Industry | Sichuan Jinshi vs. Milkyway Chemical Supply |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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