Correlation Between Nanjing Putian and Shenyang Blue
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Shenyang Blue Silver, you can compare the effects of market volatilities on Nanjing Putian and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Shenyang Blue.
Diversification Opportunities for Nanjing Putian and Shenyang Blue
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Shenyang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Shenyang Blue go up and down completely randomly.
Pair Corralation between Nanjing Putian and Shenyang Blue
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.97 times more return on investment than Shenyang Blue. However, Nanjing Putian Telecommunications is 1.03 times less risky than Shenyang Blue. It trades about 0.2 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.05 per unit of risk. If you would invest 390.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 17.95% 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. Shenyang Blue Silver
Performance |
| Timeline |
| Nanjing Putian Telec |
| Shenyang Blue Silver |
Nanjing Putian and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Shenyang Blue
The main advantage of trading using opposite Nanjing Putian and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
| Shenyang Blue vs. HUAQIN TECHNOLOGY LTD | Shenyang Blue vs. Lootom Telcovideo Network | Shenyang Blue vs. Guangdong Jingyi Metal | Shenyang Blue vs. Shenzhen Topway Video |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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