Correlation Between Nanjing Putian and GreenTech Environmental
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and GreenTech Environmental Co, you can compare the effects of market volatilities on Nanjing Putian and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and GreenTech Environmental.
Diversification Opportunities for Nanjing Putian and GreenTech Environmental
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and GreenTech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Nanjing Putian and GreenTech Environmental
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 40.64 times less return on investment than GreenTech Environmental. But when comparing it to its historical volatility, Nanjing Putian Telecommunications is 1.01 times less risky than GreenTech Environmental. It trades about 0.0 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,442 in GreenTech Environmental Co on September 12, 2024 and sell it today you would earn a total of 128.00 from holding GreenTech Environmental Co or generate 8.88% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| GreenTech Environmental |
Nanjing Putian and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and GreenTech Environmental
The main advantage of trading using opposite Nanjing Putian and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Shandong Mining Machinery | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. BlueFocus Communication Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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