Correlation Between Nanjing Putian and Sinomach Automobile
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sinomach Automobile Co, you can compare the effects of market volatilities on Nanjing Putian and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sinomach Automobile.
Diversification Opportunities for Nanjing Putian and Sinomach Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Sinomach is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sinomach Automobile
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.92 times more return on investment than Sinomach Automobile. However, Nanjing Putian is 1.92 times more volatile than Sinomach Automobile Co. It trades about 0.15 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of risk. If you would invest 400.00 in Nanjing Putian Telecommunications on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Nanjing Putian Telecommunications or generate 12.5% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sinomach Automobile |
Nanjing Putian and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sinomach Automobile
The main advantage of trading using opposite Nanjing Putian and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile'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 |
| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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