Correlation Between Nanjing Putian and MayAir Technology
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and MayAir Technology Co, you can compare the effects of market volatilities on Nanjing Putian and MayAir Technology 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 MayAir Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and MayAir Technology.
Diversification Opportunities for Nanjing Putian and MayAir Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and MayAir is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and MayAir Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MayAir Technology 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 MayAir Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MayAir Technology has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and MayAir Technology go up and down completely randomly.
Pair Corralation between Nanjing Putian and MayAir Technology
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 2.31 times more return on investment than MayAir Technology. However, Nanjing Putian is 2.31 times more volatile than MayAir Technology Co. It trades about 0.1 of its potential returns per unit of risk. MayAir Technology Co is currently generating about 0.08 per unit of risk. If you would invest 363.00 in Nanjing Putian Telecommunications on November 2, 2024 and sell it today you would earn a total of 25.00 from holding Nanjing Putian Telecommunications or generate 6.89% 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. MayAir Technology Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| MayAir Technology |
Nanjing Putian and MayAir Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and MayAir Technology
The main advantage of trading using opposite Nanjing Putian and MayAir Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, MayAir Technology 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 MayAir Technology will offset losses from the drop in MayAir Technology's long position.| Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. Easyhome New Retail | Nanjing Putian vs. Anhui Deli Household | Nanjing Putian vs. New Hope Dairy |
| MayAir Technology vs. Shengda Mining Co | MayAir Technology vs. Marssenger Kitchenware Co | MayAir Technology vs. Zijin Mining Group | MayAir Technology vs. Rising Nonferrous Metals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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