Correlation Between Nanjing Putian and Sanan Optoelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Nanjing Putian and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sanan Optoelectronics.
Diversification Opportunities for Nanjing Putian and Sanan Optoelectronics
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Sanan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sanan Optoelectronics
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.97 times more return on investment than Sanan Optoelectronics. However, Nanjing Putian is 1.97 times more volatile than Sanan Optoelectronics Co. It trades about 0.19 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.04 per unit of risk. If you would invest 317.00 in Nanjing Putian Telecommunications on September 13, 2024 and sell it today you would earn a total of 119.00 from holding Nanjing Putian Telecommunications or generate 37.54% 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. Sanan Optoelectronics Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sanan Optoelectronics |
Nanjing Putian and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sanan Optoelectronics
The main advantage of trading using opposite Nanjing Putian and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' 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 |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |