Correlation Between Nanjing Putian and Zhejiang HISUN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Zhejiang HISUN Biomaterials, you can compare the effects of market volatilities on Nanjing Putian and Zhejiang HISUN 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 Zhejiang HISUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Zhejiang HISUN.
Diversification Opportunities for Nanjing Putian and Zhejiang HISUN
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Zhejiang HISUN Biomaterials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang HISUN Bioma 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 Zhejiang HISUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang HISUN Bioma has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Zhejiang HISUN go up and down completely randomly.
Pair Corralation between Nanjing Putian and Zhejiang HISUN
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.32 times more return on investment than Zhejiang HISUN. However, Nanjing Putian is 1.32 times more volatile than Zhejiang HISUN Biomaterials. It trades about 0.04 of its potential returns per unit of risk. Zhejiang HISUN Biomaterials is currently generating about -0.02 per unit of risk. If you would invest 318.00 in Nanjing Putian Telecommunications on September 12, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 36.48% 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. Zhejiang HISUN Biomaterials
Performance |
| Timeline |
| Nanjing Putian Telec |
| Zhejiang HISUN Bioma |
Nanjing Putian and Zhejiang HISUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Zhejiang HISUN
The main advantage of trading using opposite Nanjing Putian and Zhejiang HISUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Zhejiang HISUN 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 Zhejiang HISUN will offset losses from the drop in Zhejiang HISUN'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 |
| Zhejiang HISUN vs. Nanjing Putian Telecommunications | Zhejiang HISUN vs. Eastern Communications Co | Zhejiang HISUN vs. Anhui Jianghuai Automobile | Zhejiang HISUN vs. China World Trade |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |