Correlation Between Nanjing Putian and Fujian Anjoy
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Fujian Anjoy Foods, you can compare the effects of market volatilities on Nanjing Putian and Fujian Anjoy 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 Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Fujian Anjoy.
Diversification Opportunities for Nanjing Putian and Fujian Anjoy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Fujian is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy 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 Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Nanjing Putian and Fujian Anjoy
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.59 times more return on investment than Fujian Anjoy. However, Nanjing Putian is 1.59 times more volatile than Fujian Anjoy Foods. It trades about 0.2 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about 0.04 per unit of risk. If you would invest 390.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Nanjing Putian Telecommunications or generate 17.95% 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. Fujian Anjoy Foods
Performance |
| Timeline |
| Nanjing Putian Telec |
| Fujian Anjoy Foods |
Nanjing Putian and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Fujian Anjoy
The main advantage of trading using opposite Nanjing Putian and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Shenzhen Hifuture Electric | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Shenyang Huitian Thermal |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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