Correlation Between Nanjing Putian and Tianjin Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Nanjing Putian and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Tianjin Hi.
Diversification Opportunities for Nanjing Putian and Tianjin Hi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Tianjin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Tianjin Hi go up and down completely randomly.
Pair Corralation between Nanjing Putian and Tianjin Hi
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.2 times more return on investment than Tianjin Hi. However, Nanjing Putian is 1.2 times more volatile than Tianjin Hi Tech Development. It trades about 0.41 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.12 per unit of risk. If you would invest 220.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 219.00 from holding Nanjing Putian Telecommunications or generate 99.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Nanjing Putian Telec |
| Tianjin Hi Tech |
Nanjing Putian and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Tianjin Hi
The main advantage of trading using opposite Nanjing Putian and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| Tianjin Hi vs. Nanjing Putian Telecommunications | Tianjin Hi vs. Shenzhen Hifuture Electric | Tianjin Hi vs. Shenyang Huitian Thermal | Tianjin Hi vs. Jiangsu Xinning Modern |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |