Correlation Between Nanjing Putian and Contec Medical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Contec Medical Systems, you can compare the effects of market volatilities on Nanjing Putian and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Contec Medical.
Diversification Opportunities for Nanjing Putian and Contec Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Contec is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Contec Medical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Contec Medical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.76 times more return on investment than Contec Medical. However, Nanjing Putian is 1.76 times more volatile than Contec Medical Systems. It trades about 0.23 of its potential returns per unit of risk. Contec Medical Systems is currently generating about -0.04 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Contec Medical Systems
Performance |
| Timeline |
| Nanjing Putian Telec |
| Contec Medical Systems |
Nanjing Putian and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Contec Medical
The main advantage of trading using opposite Nanjing Putian and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical'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 |
| Contec Medical vs. Nanjing Putian Telecommunications | Contec Medical vs. Shenzhen Hifuture Electric | Contec Medical vs. Tianjin Realty Development | Contec Medical 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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