Correlation Between Nanjing Putian and Hang Xiao
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Hang Xiao Steel, you can compare the effects of market volatilities on Nanjing Putian and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Hang Xiao.
Diversification Opportunities for Nanjing Putian and Hang Xiao
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Hang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Hang Xiao go up and down completely randomly.
Pair Corralation between Nanjing Putian and Hang Xiao
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.68 times more return on investment than Hang Xiao. However, Nanjing Putian is 2.68 times more volatile than Hang Xiao Steel. It trades about -0.08 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about -0.3 per unit of risk. If you would invest 428.00 in Nanjing Putian Telecommunications on October 21, 2024 and sell it today you would lose (37.00) from holding Nanjing Putian Telecommunications or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Hang Xiao Steel
Performance |
| Timeline |
| Nanjing Putian Telec |
| Hang Xiao Steel |
Nanjing Putian and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Hang Xiao
The main advantage of trading using opposite Nanjing Putian and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Nanjing Putian vs. Kangping Technology Co | Nanjing Putian vs. XiaMen HongXin Electron tech | Nanjing Putian vs. Guangzhou Haige Communications | Nanjing Putian vs. Holitech Technology Co |
| Hang Xiao vs. Easyhome New Retail | Hang Xiao vs. Zhongzhu Medical Holdings | Hang Xiao vs. Shenzhen Glory Medical | Hang Xiao vs. Ningbo Homelink Eco iTech |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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