Correlation Between Nanjing Putian and Iat Automobile
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Iat Automobile Technology, you can compare the effects of market volatilities on Nanjing Putian and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Iat Automobile.
Diversification Opportunities for Nanjing Putian and Iat Automobile
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Iat is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Iat Automobile go up and down completely randomly.
Pair Corralation between Nanjing Putian and Iat Automobile
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.04 times more return on investment than Iat Automobile. However, Nanjing Putian is 1.04 times more volatile than Iat Automobile Technology. It trades about 0.23 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.07 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. Iat Automobile Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Iat Automobile Technology |
Nanjing Putian and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Iat Automobile
The main advantage of trading using opposite Nanjing Putian and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile'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 |
| Iat Automobile vs. Juewei Food Co | Iat Automobile vs. Jiajia Food Group | Iat Automobile vs. Panda Dairy Corp | Iat Automobile vs. Guilin Seamild Foods |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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