Correlation Between Nanjing Putian and Jonjee Hi
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Nanjing Putian and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jonjee Hi.
Diversification Opportunities for Nanjing Putian and Jonjee Hi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Jonjee is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jonjee Hi go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jonjee Hi
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.46 times more return on investment than Jonjee Hi. However, Nanjing Putian is 1.46 times more volatile than Jonjee Hi tech Industrial. It trades about 0.03 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.04 per unit of risk. If you would invest 344.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 33.72% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jonjee Hi tech |
Nanjing Putian and Jonjee Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jonjee Hi
The main advantage of trading using opposite Nanjing Putian and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
| Jonjee Hi vs. Beijing Wantai Biological | Jonjee Hi vs. Aluminum Corp of | Jonjee Hi vs. COL Digital Publishing | Jonjee Hi vs. Shaanxi Meineng Clean |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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