Correlation Between Nanjing Putian and Shandong Sinoglory
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Shandong Sinoglory Health, you can compare the effects of market volatilities on Nanjing Putian and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Shandong Sinoglory.
Diversification Opportunities for Nanjing Putian and Shandong Sinoglory
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Shandong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Nanjing Putian and Shandong Sinoglory
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.33 times more return on investment than Shandong Sinoglory. However, Nanjing Putian is 2.33 times more volatile than Shandong Sinoglory Health. It trades about 0.34 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.31 per unit of risk. If you would invest 318.00 in Nanjing Putian Telecommunications on November 5, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Nanjing Putian Telec |
| Shandong Sinoglory Health |
Nanjing Putian and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Shandong Sinoglory
The main advantage of trading using opposite Nanjing Putian and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Mobile Limited |
| Shandong Sinoglory vs. Thunder Software Technology | Shandong Sinoglory vs. Harvest Fund Management | Shandong Sinoglory vs. Dareway Software Co | Shandong Sinoglory vs. Glodon 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 CEOs Directory module to screen CEOs from public companies around the world.
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