Correlation Between Nanjing Putian and China National
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and China National Software, you can compare the effects of market volatilities on Nanjing Putian and China National 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 China National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and China National.
Diversification Opportunities for Nanjing Putian and China National
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and China National Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China National Software 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 China National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China National Software has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and China National go up and down completely randomly.
Pair Corralation between Nanjing Putian and China National
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the China National. In addition to that, Nanjing Putian is 1.46 times more volatile than China National Software. It trades about -0.2 of its total potential returns per unit of risk. China National Software is currently generating about -0.19 per unit of volatility. If you would invest 5,110 in China National Software on October 16, 2024 and sell it today you would lose (593.00) from holding China National Software or give up 11.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. China National Software
Performance |
| Timeline |
| Nanjing Putian Telec |
| China National Software |
Nanjing Putian and China National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and China National
The main advantage of trading using opposite Nanjing Putian and China National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, China National 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 China National will offset losses from the drop in China National's long position.| Nanjing Putian vs. Xiandai Investment Co | Nanjing Putian vs. Luyin Investment Group | Nanjing Putian vs. Beijing Jiaman Dress | Nanjing Putian vs. Zhejiang Construction Investment |
| China National vs. Masterwork Machinery | China National vs. China World Trade | China National vs. Ningbo Construction Co | China National vs. Jinlong Machinery Electronic |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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