Correlation Between Nanjing Putian and Jiujiang Shanshui
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Nanjing Putian and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jiujiang Shanshui.
Diversification Opportunities for Nanjing Putian and Jiujiang Shanshui
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Jiujiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jiujiang Shanshui
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 2.92 times less return on investment than Jiujiang Shanshui. In addition to that, Nanjing Putian is 2.34 times more volatile than Jiujiang Shanshui Technology. It trades about 0.01 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,637 in Jiujiang Shanshui Technology on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Jiujiang Shanshui Technology or generate 1.65% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jiujiang Shanshui |
Nanjing Putian and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jiujiang Shanshui
The main advantage of trading using opposite Nanjing Putian and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian vs. BlueFocus Communication Group |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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