Correlation Between Nanjing Putian and Fuzhou Rockchip
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Nanjing Putian and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Fuzhou Rockchip.
Diversification Opportunities for Nanjing Putian and Fuzhou Rockchip
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Fuzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Nanjing Putian and Fuzhou Rockchip
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Fuzhou Rockchip. In addition to that, Nanjing Putian is 1.67 times more volatile than Fuzhou Rockchip Electronics. It trades about -0.03 of its total potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.04 per unit of volatility. If you would invest 9,240 in Fuzhou Rockchip Electronics on September 13, 2024 and sell it today you would earn a total of 153.00 from holding Fuzhou Rockchip Electronics or generate 1.66% 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. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Nanjing Putian Telec |
| Fuzhou Rockchip Elec |
Nanjing Putian and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Fuzhou Rockchip
The main advantage of trading using opposite Nanjing Putian and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Kangyue Technology Co | Fuzhou Rockchip vs. Shenzhen Hifuture Electric |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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