Correlation Between Nanjing Putian and Jiangyin Jianghua
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Nanjing Putian and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Jiangyin Jianghua.
Diversification Opportunities for Nanjing Putian and Jiangyin Jianghua
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Jiangyin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Nanjing Putian and Jiangyin Jianghua
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.95 times more return on investment than Jiangyin Jianghua. However, Nanjing Putian is 1.95 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.08 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.16 per unit of risk. If you would invest 379.00 in Nanjing Putian Telecommunications on October 29, 2024 and sell it today you would earn a total of 19.00 from holding Nanjing Putian Telecommunications or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Nanjing Putian Telec |
| Jiangyin Jianghua |
Nanjing Putian and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Jiangyin Jianghua
The main advantage of trading using opposite Nanjing Putian and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Nanjing Putian vs. Guangdong Qunxing Toys | Nanjing Putian vs. Kuang Chi Technologies | Nanjing Putian vs. Offshore Oil Engineering | Nanjing Putian vs. Jilin Jlu Communication |
| Jiangyin Jianghua vs. Jiangsu Yanghe Brewery | Jiangyin Jianghua vs. Heilongjiang Publishing Media | Jiangyin Jianghua vs. Beijing Yanjing Brewery | Jiangyin Jianghua vs. Linewell Software Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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