Correlation Between Nanjing Putian and Industrial Bank
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Industrial Bank Co, you can compare the effects of market volatilities on Nanjing Putian and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Industrial Bank.
Diversification Opportunities for Nanjing Putian and Industrial Bank
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nanjing and Industrial is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Industrial Bank go up and down completely randomly.
Pair Corralation between Nanjing Putian and Industrial Bank
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Industrial Bank. In addition to that, Nanjing Putian is 3.6 times more volatile than Industrial Bank Co. It trades about -0.08 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.25 per unit of volatility. If you would invest 1,805 in Industrial Bank Co on October 30, 2024 and sell it today you would earn a total of 226.00 from holding Industrial Bank Co or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Industrial Bank Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Industrial Bank |
Nanjing Putian and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Industrial Bank
The main advantage of trading using opposite Nanjing Putian and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Nanjing Putian vs. Tongyu Communication | Nanjing Putian vs. Eastern Air Logistics | Nanjing Putian vs. Xizi Clean Energy | Nanjing Putian vs. Lootom Telcovideo Network |
| Industrial Bank vs. Nanya New Material | Industrial Bank vs. Hainan Mining Co | Industrial Bank vs. Konfoong Materials International | Industrial Bank vs. Hengerda New Materials |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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