Correlation Between Nanjing Putian and Offshore Oil
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Offshore Oil Engineering, you can compare the effects of market volatilities on Nanjing Putian and Offshore Oil 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 Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Offshore Oil.
Diversification Opportunities for Nanjing Putian and Offshore Oil
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanjing and Offshore is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering 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 Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Offshore Oil go up and down completely randomly.
Pair Corralation between Nanjing Putian and Offshore Oil
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.66 times more return on investment than Offshore Oil. However, Nanjing Putian is 1.66 times more volatile than Offshore Oil Engineering. It trades about 0.03 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.01 per unit of risk. If you would invest 333.00 in Nanjing Putian Telecommunications on October 29, 2024 and sell it today you would earn a total of 65.00 from holding Nanjing Putian Telecommunications or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Offshore Oil Engineering
Performance |
| Timeline |
| Nanjing Putian Telec |
| Offshore Oil Engineering |
Nanjing Putian and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Offshore Oil
The main advantage of trading using opposite Nanjing Putian and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Nanjing Putian vs. Guangdong Qunxing Toys | Nanjing Putian vs. Kuang Chi Technologies | Nanjing Putian vs. Offshore Oil Engineering | Nanjing Putian vs. Jilin Jlu Communication |
| Offshore Oil vs. Beijing YanDong MicroElectronic | Offshore Oil vs. LianChuang Electronic Technology | Offshore Oil vs. Uroica Mining Safety | Offshore Oil vs. Anhui Tongguan Copper |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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