Correlation Between Nanjing Putian and Jangho Group
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jangho Group Co, you can compare the effects of market volatilities on Nanjing Putian and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jangho Group.
Diversification Opportunities for Nanjing Putian and Jangho Group
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Jangho is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho Group 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jangho Group go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jangho Group
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.69 times more return on investment than Jangho Group. However, Nanjing Putian is 1.69 times more volatile than Jangho Group Co. It trades about 0.02 of its potential returns per unit of risk. Jangho Group Co is currently generating about -0.02 per unit of risk. If you would invest 350.00 in Nanjing Putian Telecommunications on November 29, 2024 and sell it today you would earn a total of 42.00 from holding Nanjing Putian Telecommunications or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Jangho Group Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jangho Group |
Nanjing Putian and Jangho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jangho Group
The main advantage of trading using opposite Nanjing Putian and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.| Nanjing Putian vs. Allied Machinery Co | Nanjing Putian vs. Zhejiang Yinlun Machinery | Nanjing Putian vs. Baoding Dongli Machinery | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
| Jangho Group vs. Bloomage Biotechnology Corp | Jangho Group vs. Ningbo MedicalSystem Biotechnology | Jangho Group vs. Zhejiang Qianjiang Motorcycle | Jangho Group vs. Shanghai Jinfeng Wine |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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