Correlation Between Nanjing Putian and Konfoong Materials
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Konfoong Materials International, you can compare the effects of market volatilities on Nanjing Putian and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Konfoong Materials.
Diversification Opportunities for Nanjing Putian and Konfoong Materials
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Konfoong is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Konfoong Materials go up and down completely randomly.
Pair Corralation between Nanjing Putian and Konfoong Materials
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.09 times more return on investment than Konfoong Materials. However, Nanjing Putian is 2.09 times more volatile than Konfoong Materials International. It trades about 0.34 of its potential returns per unit of risk. Konfoong Materials International is currently generating about 0.33 per unit of risk. If you would invest 318.00 in Nanjing Putian Telecommunications on November 5, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Konfoong Materials Internation
Performance |
| Timeline |
| Nanjing Putian Telec |
| Konfoong Materials |
Nanjing Putian and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Konfoong Materials
The main advantage of trading using opposite Nanjing Putian and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Mobile Limited |
| Konfoong Materials vs. Lecron Energy Saving | Konfoong Materials vs. Xinjiang Beixin RoadBridge | Konfoong Materials vs. Qilu Bank Co | Konfoong Materials vs. Agricultural Bank of |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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