Correlation Between Nanjing Putian and Healthcare
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Healthcare Co, you can compare the effects of market volatilities on Nanjing Putian and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Healthcare.
Diversification Opportunities for Nanjing Putian and Healthcare
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Healthcare is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Healthcare go up and down completely randomly.
Pair Corralation between Nanjing Putian and Healthcare
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Healthcare. In addition to that, Nanjing Putian is 1.73 times more volatile than Healthcare Co. It trades about -0.1 of its total potential returns per unit of risk. Healthcare Co is currently generating about -0.04 per unit of volatility. If you would invest 695.00 in Healthcare Co on October 17, 2024 and sell it today you would lose (40.00) from holding Healthcare Co or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Healthcare Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Healthcare |
Nanjing Putian and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Healthcare
The main advantage of trading using opposite Nanjing Putian and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare'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 |
| Healthcare vs. Mango Excellent Media | Healthcare vs. Bank of Communications | Healthcare vs. Threes Company Media | Healthcare vs. Nanjing Putian Telecommunications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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