Correlation Between Nanjing Putian and Sunny Loan
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sunny Loan Top, you can compare the effects of market volatilities on Nanjing Putian and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sunny Loan.
Diversification Opportunities for Nanjing Putian and Sunny Loan
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nanjing and Sunny is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sunny Loan go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sunny Loan
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 1.48 times less return on investment than Sunny Loan. In addition to that, Nanjing Putian is 1.12 times more volatile than Sunny Loan Top. It trades about 0.02 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.04 per unit of volatility. If you would invest 647.00 in Sunny Loan Top on October 11, 2024 and sell it today you would earn a total of 255.00 from holding Sunny Loan Top or generate 39.41% 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. Sunny Loan Top
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sunny Loan Top |
Nanjing Putian and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sunny Loan
The main advantage of trading using opposite Nanjing Putian and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Aofu Environmental Technology | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian vs. Tianjin Capital Environmental |
| Sunny Loan vs. Dhc Software Co | Sunny Loan vs. Nanjing Putian Telecommunications | Sunny Loan vs. Queclink Wireless Solutions | Sunny Loan vs. Inspur Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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