Correlation Between Nanjing Putian and Joincare Pharmaceutical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Nanjing Putian and Joincare Pharmaceutical 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 Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Joincare Pharmaceutical.
Diversification Opportunities for Nanjing Putian and Joincare Pharmaceutical
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Joincare is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical 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 Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Joincare Pharmaceutical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.51 times more return on investment than Joincare Pharmaceutical. However, Nanjing Putian is 2.51 times more volatile than Joincare Pharmaceutical Group. It trades about 0.18 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.01 per unit of risk. If you would invest 387.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Nanjing Putian Telecommunications or generate 15.76% 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. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Nanjing Putian Telec |
| Joincare Pharmaceutical |
Nanjing Putian and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Joincare Pharmaceutical
The main advantage of trading using opposite Nanjing Putian and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
| Joincare Pharmaceutical vs. Andon Health Co | Joincare Pharmaceutical vs. Miracll Chemicals Co | Joincare Pharmaceutical vs. Mingchen Health Co | Joincare Pharmaceutical vs. Lotus Health Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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