Correlation Between Nanjing Putian and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Nanjing Putian and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jiangsu Jinling.
Diversification Opportunities for Nanjing Putian and Jiangsu Jinling
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jiangsu Jinling
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.75 times more return on investment than Jiangsu Jinling. However, Nanjing Putian is 1.75 times more volatile than Jiangsu Jinling Sports. It trades about 0.23 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.26 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jiangsu Jinling Sports |
Nanjing Putian and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jiangsu Jinling
The main advantage of trading using opposite Nanjing Putian and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling'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 |
| Jiangsu Jinling vs. Nanjing Putian Telecommunications | Jiangsu Jinling vs. Shenzhen Hifuture Electric | Jiangsu Jinling vs. Tianjin Realty Development | Jiangsu Jinling vs. Shenyang Huitian Thermal |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |