Correlation Between Nanjing Putian and Jinyu Bio
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Nanjing Putian and Jinyu Bio 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 Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jinyu Bio.
Diversification Opportunities for Nanjing Putian and Jinyu Bio
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Jinyu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio 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 Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jinyu Bio go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jinyu Bio
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.57 times more return on investment than Jinyu Bio. However, Nanjing Putian is 2.57 times more volatile than Jinyu Bio Technology Co. It trades about -0.04 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.25 per unit of risk. If you would invest 412.00 in Nanjing Putian Telecommunications on October 24, 2024 and sell it today you would lose (23.00) from holding Nanjing Putian Telecommunications or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jinyu Bio Technology |
Nanjing Putian and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jinyu Bio
The main advantage of trading using opposite Nanjing Putian and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's long position.| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Shanghai V Test Semiconductor | Nanjing Putian vs. Thinkon Semiconductor Jinzhou | Nanjing Putian vs. Innovative Medical Management |
| Jinyu Bio vs. Shandong Rike Chemical | Jinyu Bio vs. Xinxiang Chemical Fiber | Jinyu Bio vs. Longxing Chemical Stock | Jinyu Bio vs. Nanning Chemical Industry |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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