Correlation Between Nanjing Putian and Hainan Mining
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Hainan Mining Co, you can compare the effects of market volatilities on Nanjing Putian and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Hainan Mining.
Diversification Opportunities for Nanjing Putian and Hainan Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and Hainan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Hainan Mining go up and down completely randomly.
Pair Corralation between Nanjing Putian and Hainan Mining
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.6 times more return on investment than Hainan Mining. However, Nanjing Putian is 1.6 times more volatile than Hainan Mining Co. It trades about 0.02 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of risk. If you would invest 352.00 in Nanjing Putian Telecommunications on November 28, 2024 and sell it today you would earn a total of 32.00 from holding Nanjing Putian Telecommunications or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Hainan Mining Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Hainan Mining |
Nanjing Putian and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Hainan Mining
The main advantage of trading using opposite Nanjing Putian and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Nanjing Putian vs. PetroChina Co Ltd | Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Petroleum Chemical | Nanjing Putian vs. China Construction Bank |
| Hainan Mining vs. Penyao Environmental Protection | Hainan Mining vs. Changjiang Jinggong Steel | Hainan Mining vs. Tibet Huayu Mining | Hainan Mining vs. Guangdong Jingyi Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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