Correlation Between Nanjing Putian and Shanghai Ziyan
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Nanjing Putian and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Shanghai Ziyan.
Diversification Opportunities for Nanjing Putian and Shanghai Ziyan
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and Shanghai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Nanjing Putian and Shanghai Ziyan
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.58 times more return on investment than Shanghai Ziyan. However, Nanjing Putian is 1.58 times more volatile than Shanghai Ziyan Foods. It trades about 0.04 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.01 per unit of risk. If you would invest 288.00 in Nanjing Putian Telecommunications on October 16, 2024 and sell it today you would earn a total of 77.00 from holding Nanjing Putian Telecommunications or generate 26.74% 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. Shanghai Ziyan Foods
Performance |
| Timeline |
| Nanjing Putian Telec |
| Shanghai Ziyan Foods |
Nanjing Putian and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Shanghai Ziyan
The main advantage of trading using opposite Nanjing Putian and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Nanjing Putian vs. Xiandai Investment Co | Nanjing Putian vs. Luyin Investment Group | Nanjing Putian vs. Beijing Jiaman Dress | Nanjing Putian vs. Zhejiang Construction Investment |
| Shanghai Ziyan vs. Nanjing Putian Telecommunications | Shanghai Ziyan vs. Songz Automobile Air | Shanghai Ziyan vs. Fiberhome Telecommunication Technologies | Shanghai Ziyan vs. Dymatic Chemicals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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