Correlation Between Nanjing Putian and Linewell Software
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Linewell Software Co, you can compare the effects of market volatilities on Nanjing Putian and Linewell Software 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 Linewell Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Linewell Software.
Diversification Opportunities for Nanjing Putian and Linewell Software
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Linewell is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Linewell Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linewell Software 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 Linewell Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linewell Software has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Linewell Software go up and down completely randomly.
Pair Corralation between Nanjing Putian and Linewell Software
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.34 times more return on investment than Linewell Software. However, Nanjing Putian is 1.34 times more volatile than Linewell Software Co. It trades about 0.21 of its potential returns per unit of risk. Linewell Software Co is currently generating about 0.1 per unit of risk. If you would invest 147.00 in Nanjing Putian Telecommunications on September 12, 2024 and sell it today you would earn a total of 289.00 from holding Nanjing Putian Telecommunications or generate 196.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Linewell Software Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Linewell Software |
Nanjing Putian and Linewell Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Linewell Software
The main advantage of trading using opposite Nanjing Putian and Linewell Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Linewell Software 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 Linewell Software will offset losses from the drop in Linewell Software's long position.| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian vs. BlueFocus Communication Group |
| Linewell Software vs. Gansu Jiu Steel | Linewell Software vs. Shandong Mining Machinery | Linewell Software vs. Aba Chemicals Corp | Linewell Software vs. BlueFocus Communication Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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