Correlation Between Nanjing Putian and Sino Medical
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sino Medical Sciences, you can compare the effects of market volatilities on Nanjing Putian and Sino Medical 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sino Medical.
Diversification Opportunities for Nanjing Putian and Sino Medical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Sino is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sino Medical go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sino Medical
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.4 times more return on investment than Sino Medical. However, Nanjing Putian is 1.4 times more volatile than Sino Medical Sciences. It trades about 0.13 of its potential returns per unit of risk. Sino Medical Sciences is currently generating about 0.01 per unit of risk. If you would invest 203.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 257.00 from holding Nanjing Putian Telecommunications or generate 126.6% 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. Sino Medical Sciences
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sino Medical Sciences |
Nanjing Putian and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sino Medical
The main advantage of trading using opposite Nanjing Putian and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sino Medical 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
| Sino Medical vs. Chengdu Kanghua Biological | Sino Medical vs. Beijing Wantai Biological | Sino Medical vs. Suzhou Novoprotein Scientific | Sino Medical vs. Aluminum Corp of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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