Correlation Between Nanjing Putian and Xinya Electronic
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Xinya Electronic Co, you can compare the effects of market volatilities on Nanjing Putian and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Xinya Electronic.
Diversification Opportunities for Nanjing Putian and Xinya Electronic
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanjing and Xinya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Xinya Electronic go up and down completely randomly.
Pair Corralation between Nanjing Putian and Xinya Electronic
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing Putian Telecommunications is 1.11 times less risky than Xinya Electronic. The stock trades about -0.21 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,472 in Xinya Electronic Co on October 16, 2024 and sell it today you would lose (102.00) from holding Xinya Electronic Co or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Xinya Electronic Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Xinya Electronic |
Nanjing Putian and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Xinya Electronic
The main advantage of trading using opposite Nanjing Putian and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Nanjing Putian vs. Jiangsu Xinri E Vehicle | Nanjing Putian vs. Fuda Alloy Materials | Nanjing Putian vs. Suzhou Xingye Material | Nanjing Putian vs. Xiangyang Automobile Bearing |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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