Correlation Between Nanjing Putian and Anhui Transport
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Anhui Transport Consulting, you can compare the effects of market volatilities on Nanjing Putian and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Anhui Transport.
Diversification Opportunities for Nanjing Putian and Anhui Transport
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Anhui is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Anhui Transport go up and down completely randomly.
Pair Corralation between Nanjing Putian and Anhui Transport
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.6 times more return on investment than Anhui Transport. However, Nanjing Putian is 1.6 times more volatile than Anhui Transport Consulting. It trades about 0.09 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.04 per unit of risk. If you would invest 192.00 in Nanjing Putian Telecommunications on November 1, 2024 and sell it today you would earn a total of 196.00 from holding Nanjing Putian Telecommunications or generate 102.08% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Nanjing Putian Telec |
| Anhui Transport Cons |
Nanjing Putian and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Anhui Transport
The main advantage of trading using opposite Nanjing Putian and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Nanjing Putian vs. Vanfund Urban Investment | Nanjing Putian vs. Xiangyang Automobile Bearing | Nanjing Putian vs. Jointo Energy Investment | Nanjing Putian vs. Xiamen Insight Investment |
| Anhui Transport vs. Chengtun Mining Group | Anhui Transport vs. Zijin Mining Group | Anhui Transport vs. JCHX Mining Management | Anhui Transport vs. Pengxin International Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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