Correlation Between Nanjing Putian and Qinghaihuading Industrial
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Nanjing Putian and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Qinghaihuading Industrial.
Diversification Opportunities for Nanjing Putian and Qinghaihuading Industrial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Qinghaihuading is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Nanjing Putian and Qinghaihuading Industrial
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.94 times more return on investment than Qinghaihuading Industrial. However, Nanjing Putian is 1.94 times more volatile than Qinghaihuading Industrial Co. It trades about 0.21 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.05 per unit of risk. If you would invest 388.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Nanjing Putian Telecommunications or generate 18.56% 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. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Qinghaihuading Industrial |
Nanjing Putian and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Qinghaihuading Industrial
The main advantage of trading using opposite Nanjing Putian and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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