Correlation Between Nanjing Putian and Metallurgical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Metallurgical of, you can compare the effects of market volatilities on Nanjing Putian and Metallurgical 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 Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Metallurgical.
Diversification Opportunities for Nanjing Putian and Metallurgical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and Metallurgical is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Metallurgical of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallurgical 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 Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallurgical has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Metallurgical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Metallurgical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Metallurgical. In addition to that, Nanjing Putian is 2.4 times more volatile than Metallurgical of. It trades about -0.09 of its total potential returns per unit of risk. Metallurgical of is currently generating about -0.14 per unit of volatility. If you would invest 350.00 in Metallurgical of on October 11, 2024 and sell it today you would lose (39.00) from holding Metallurgical of or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Metallurgical of
Performance |
| Timeline |
| Nanjing Putian Telec |
| Metallurgical |
Nanjing Putian and Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Metallurgical
The main advantage of trading using opposite Nanjing Putian and Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Metallurgical 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 Metallurgical will offset losses from the drop in Metallurgical's long position.| Nanjing Putian vs. Cultural Investment Holdings | Nanjing Putian vs. Jiangsu Yanghe Brewery | Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Dareway Software Co |
| Metallurgical vs. Yuanjie Semiconductor Technology | Metallurgical vs. Southchip Semiconductor Technology | Metallurgical vs. GigaDevice SemiconductorBeiji | Metallurgical vs. Shenzhen Bioeasy Biotechnology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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