Correlation Between Nanjing Putian and Thinkingdom Media
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Thinkingdom Media Group, you can compare the effects of market volatilities on Nanjing Putian and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Thinkingdom Media.
Diversification Opportunities for Nanjing Putian and Thinkingdom Media
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and Thinkingdom is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Nanjing Putian and Thinkingdom Media
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.22 times more return on investment than Thinkingdom Media. However, Nanjing Putian is 1.22 times more volatile than Thinkingdom Media Group. It trades about 0.02 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.01 per unit of risk. If you would invest 335.00 in Nanjing Putian Telecommunications on October 14, 2024 and sell it today you would earn a total of 28.00 from holding Nanjing Putian Telecommunications or generate 8.36% 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. Thinkingdom Media Group
Performance |
| Timeline |
| Nanjing Putian Telec |
| Thinkingdom Media |
Nanjing Putian and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Thinkingdom Media
The main advantage of trading using opposite Nanjing Putian and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Nanjing Putian vs. GRINM Semiconductor Materials | Nanjing Putian vs. HaiXin Foods Co | Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. GigaDevice SemiconductorBeiji |
| Thinkingdom Media vs. Hubei Geoway Investment | Thinkingdom Media vs. Nanjing Putian Telecommunications | Thinkingdom Media vs. China Satellite Communications | Thinkingdom Media vs. Nuode Investment 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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