Correlation Between Nanjing Putian and Zhongzhu Medical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Nanjing Putian and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Zhongzhu Medical.
Diversification Opportunities for Nanjing Putian and Zhongzhu Medical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Zhongzhu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Zhongzhu Medical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Zhongzhu Medical. In addition to that, Nanjing Putian is 2.36 times more volatile than Zhongzhu Medical Holdings. It trades about -0.1 of its total potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.03 per unit of volatility. If you would invest 153.00 in Zhongzhu Medical Holdings on September 15, 2024 and sell it today you would lose (3.00) from holding Zhongzhu Medical Holdings or give up 1.96% 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. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Nanjing Putian Telec |
| Zhongzhu Medical Holdings |
Nanjing Putian and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Zhongzhu Medical
The main advantage of trading using opposite Nanjing Putian and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
| Zhongzhu Medical vs. Zhongtong Guomai Communication | Zhongzhu Medical vs. Tongyu Communication | Zhongzhu Medical vs. Nanjing Putian Telecommunications | Zhongzhu Medical vs. Ping An Insurance |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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