Correlation Between Nanjing Putian and Fuda Alloy
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Fuda Alloy Materials, you can compare the effects of market volatilities on Nanjing Putian and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Fuda Alloy.
Diversification Opportunities for Nanjing Putian and Fuda Alloy
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanjing and Fuda is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Fuda Alloy go up and down completely randomly.
Pair Corralation between Nanjing Putian and Fuda Alloy
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 2.07 times less return on investment than Fuda Alloy. In addition to that, Nanjing Putian is 1.11 times more volatile than Fuda Alloy Materials. It trades about 0.11 of its total potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.26 per unit of volatility. If you would invest 1,274 in Fuda Alloy Materials on November 1, 2024 and sell it today you would earn a total of 243.00 from holding Fuda Alloy Materials or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Fuda Alloy Materials
Performance |
| Timeline |
| Nanjing Putian Telec |
| Fuda Alloy Materials |
Nanjing Putian and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Fuda Alloy
The main advantage of trading using opposite Nanjing Putian and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Nanjing Putian vs. Vanfund Urban Investment | Nanjing Putian vs. Xiangyang Automobile Bearing | Nanjing Putian vs. Jointo Energy Investment | Nanjing Putian vs. Xiamen Insight Investment |
| Fuda Alloy vs. China Mobile Limited | Fuda Alloy vs. Shanghai Jinfeng Wine | Fuda Alloy vs. Nanjing Putian Telecommunications | Fuda Alloy vs. Sichuan Fulin Transportation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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