Correlation Between Nanjing Putian and Beijing Seeyon
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Beijing Seeyon Internet, you can compare the effects of market volatilities on Nanjing Putian and Beijing Seeyon 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 Beijing Seeyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Beijing Seeyon.
Diversification Opportunities for Nanjing Putian and Beijing Seeyon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Beijing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Beijing Seeyon Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Seeyon Internet 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 Beijing Seeyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Seeyon Internet has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Beijing Seeyon go up and down completely randomly.
Pair Corralation between Nanjing Putian and Beijing Seeyon
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.95 times more return on investment than Beijing Seeyon. However, Nanjing Putian Telecommunications is 1.06 times less risky than Beijing Seeyon. It trades about 0.2 of its potential returns per unit of risk. Beijing Seeyon Internet is currently generating about 0.08 per unit of risk. If you would invest 157.00 in Nanjing Putian Telecommunications on October 26, 2024 and sell it today you would earn a total of 237.00 from holding Nanjing Putian Telecommunications or generate 150.96% 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. Beijing Seeyon Internet
Performance |
| Timeline |
| Nanjing Putian Telec |
| Beijing Seeyon Internet |
Nanjing Putian and Beijing Seeyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Beijing Seeyon
The main advantage of trading using opposite Nanjing Putian and Beijing Seeyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Beijing Seeyon 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 Beijing Seeyon will offset losses from the drop in Beijing Seeyon's long position.| Nanjing Putian vs. Inspur Software Co | Nanjing Putian vs. Thunder Software Technology | Nanjing Putian vs. Sichuan Teway Food | Nanjing Putian vs. China National Software |
| Beijing Seeyon vs. Fiberhome Telecommunication Technologies | Beijing Seeyon vs. Sinomach Automobile Co | Beijing Seeyon vs. Dazhong Transportation Group | Beijing Seeyon vs. Nanjing Putian Telecommunications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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