Correlation Between Nanjing Putian and AECC Aviation
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and AECC Aviation Power, you can compare the effects of market volatilities on Nanjing Putian and AECC Aviation 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 AECC Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and AECC Aviation.
Diversification Opportunities for Nanjing Putian and AECC Aviation
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and AECC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and AECC Aviation Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECC Aviation Power 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 AECC Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECC Aviation Power has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and AECC Aviation go up and down completely randomly.
Pair Corralation between Nanjing Putian and AECC Aviation
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.18 times more return on investment than AECC Aviation. However, Nanjing Putian is 2.18 times more volatile than AECC Aviation Power. It trades about 0.21 of its potential returns per unit of risk. AECC Aviation Power is currently generating about 0.05 per unit of risk. If you would invest 154.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 306.00 from holding Nanjing Putian Telecommunications or generate 198.7% 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. AECC Aviation Power
Performance |
| Timeline |
| Nanjing Putian Telec |
| AECC Aviation Power |
Nanjing Putian and AECC Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and AECC Aviation
The main advantage of trading using opposite Nanjing Putian and AECC Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, AECC Aviation 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 AECC Aviation will offset losses from the drop in AECC Aviation'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 |
| AECC Aviation vs. Sunwave Communications Co | AECC Aviation vs. Emdoor Information Co | AECC Aviation vs. Digital China Information | AECC Aviation vs. Guangxi Wuzhou Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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