Correlation Between Nanjing Putian and Lootom Telcovideo
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Lootom Telcovideo Network, you can compare the effects of market volatilities on Nanjing Putian and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Lootom Telcovideo.
Diversification Opportunities for Nanjing Putian and Lootom Telcovideo
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Lootom is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Nanjing Putian and Lootom Telcovideo
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.14 times more return on investment than Lootom Telcovideo. However, Nanjing Putian is 1.14 times more volatile than Lootom Telcovideo Network. It trades about 0.23 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.08 per unit of risk. If you would invest 379.00 in Nanjing Putian Telecommunications on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing Putian Telecommunications or generate 21.37% 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. Lootom Telcovideo Network
Performance |
| Timeline |
| Nanjing Putian Telec |
| Lootom Telcovideo Network |
Nanjing Putian and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Lootom Telcovideo
The main advantage of trading using opposite Nanjing Putian and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Yindu Kitchen Equipment | Nanjing Putian vs. Zhongrun Resources Investment | Nanjing Putian vs. Xiandai Investment Co |
| Lootom Telcovideo vs. Do Fluoride Chemicals Co | Lootom Telcovideo vs. Changchun BCHT Biotechnology | Lootom Telcovideo vs. Guangdong Marubi Biotechnology | Lootom Telcovideo vs. Sichuan Hebang Biotechnology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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