Correlation Between Nanjing Putian and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Nanjing Putian and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Zhangjiagang Freetrade.
Diversification Opportunities for Nanjing Putian and Zhangjiagang Freetrade
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Zhangjiagang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Nanjing Putian and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.36 times more return on investment than Zhangjiagang Freetrade. However, Nanjing Putian is 1.36 times more volatile than Zhangjiagang Freetrade Science. It trades about 0.18 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about 0.17 per unit of risk. If you would invest 387.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Nanjing Putian Telecommunications or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Nanjing Putian Telec |
| Zhangjiagang Freetrade |
Nanjing Putian and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Zhangjiagang Freetrade
The main advantage of trading using opposite Nanjing Putian and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
| Zhangjiagang Freetrade vs. Cultural Investment Holdings | Zhangjiagang Freetrade vs. Gome Telecom Equipment | Zhangjiagang Freetrade vs. Bus Online Co | Zhangjiagang Freetrade vs. Holitech Technology Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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