Correlation Between Nanjing Putian and Tjk Machinery
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Nanjing Putian and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Tjk Machinery.
Diversification Opportunities for Nanjing Putian and Tjk Machinery
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Tjk is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Tjk Machinery go up and down completely randomly.
Pair Corralation between Nanjing Putian and Tjk Machinery
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.94 times more return on investment than Tjk Machinery. However, Nanjing Putian Telecommunications is 1.07 times less risky than Tjk Machinery. It trades about 0.05 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.03 per unit of risk. If you would invest 297.00 in Nanjing Putian Telecommunications on August 25, 2024 and sell it today you would earn a total of 140.00 from holding Nanjing Putian Telecommunications or generate 47.14% 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. Tjk Machinery Tianjin
Performance |
| Timeline |
| Nanjing Putian Telec |
| Tjk Machinery Tianjin |
Nanjing Putian and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Tjk Machinery
The main advantage of trading using opposite Nanjing Putian and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Nanjing Putian vs. Ming Yang Smart | Nanjing Putian vs. 159005 | Nanjing Putian vs. Loctek Ergonomic Technology | Nanjing Putian vs. Xiamen East Asia |
| Tjk Machinery vs. Chengdu Kanghua Biological | Tjk Machinery vs. Beijing Wantai Biological | Tjk Machinery vs. Suzhou Novoprotein Scientific | Tjk Machinery vs. Aluminum Corp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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