Correlation Between Nanjing Putian and Beijing SuperMap
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Beijing SuperMap Software, you can compare the effects of market volatilities on Nanjing Putian and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Beijing SuperMap.
Diversification Opportunities for Nanjing Putian and Beijing SuperMap
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Nanjing Putian and Beijing SuperMap
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Beijing SuperMap. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing Putian Telecommunications is 1.24 times less risky than Beijing SuperMap. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing SuperMap Software is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,683 in Beijing SuperMap Software on December 4, 2024 and sell it today you would earn a total of 47.00 from holding Beijing SuperMap Software or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Beijing SuperMap Software
Performance |
| Timeline |
| Nanjing Putian Telec |
| Beijing SuperMap Software |
Nanjing Putian and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Beijing SuperMap
The main advantage of trading using opposite Nanjing Putian and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| Nanjing Putian vs. Guobo Electronics Co | Nanjing Putian vs. Bomin Electronics Co | Nanjing Putian vs. Sunny Loan Top | Nanjing Putian vs. Techshine Electronics Co |
| Beijing SuperMap vs. Shanghai Rongtai Health | Beijing SuperMap vs. By health | Beijing SuperMap vs. Huawen Media Investment | Beijing SuperMap vs. Shandong Sinoglory Health |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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