Correlation Between Nanjing Putian and Markor International
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Markor International Home, you can compare the effects of market volatilities on Nanjing Putian and Markor International 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 Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Markor International.
Diversification Opportunities for Nanjing Putian and Markor International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Markor is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home 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 Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Markor International go up and down completely randomly.
Pair Corralation between Nanjing Putian and Markor International
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.28 times more return on investment than Markor International. However, Nanjing Putian is 1.28 times more volatile than Markor International Home. It trades about 0.34 of its potential returns per unit of risk. Markor International Home is currently generating about -0.14 per unit of risk. If you would invest 318.00 in Nanjing Putian Telecommunications on November 6, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Markor International Home
Performance |
| Timeline |
| Nanjing Putian Telec |
| Markor International Home |
Nanjing Putian and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Markor International
The main advantage of trading using opposite Nanjing Putian and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Markor International 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 Markor International will offset losses from the drop in Markor International's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Mobile Limited |
| Markor International vs. Zoy Home Furnishing | Markor International vs. Beijing Kingsoft Office | Markor International vs. Kingclean Electric Co | Markor International vs. Vohringer Home Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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