Correlation Between Nanjing Putian and Sinocelltech
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Sinocelltech Group, you can compare the effects of market volatilities on Nanjing Putian and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Sinocelltech.
Diversification Opportunities for Nanjing Putian and Sinocelltech
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nanjing and Sinocelltech is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Sinocelltech go up and down completely randomly.
Pair Corralation between Nanjing Putian and Sinocelltech
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Sinocelltech. In addition to that, Nanjing Putian is 2.25 times more volatile than Sinocelltech Group. It trades about -0.36 of its total potential returns per unit of risk. Sinocelltech Group is currently generating about -0.3 per unit of volatility. If you would invest 3,864 in Sinocelltech Group on October 9, 2024 and sell it today you would lose (346.00) from holding Sinocelltech Group or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Sinocelltech Group
Performance |
| Timeline |
| Nanjing Putian Telec |
| Sinocelltech Group |
Nanjing Putian and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Sinocelltech
The main advantage of trading using opposite Nanjing Putian and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Nanjing Putian vs. Chengtun Mining Group | Nanjing Putian vs. Lotus Health Group | Nanjing Putian vs. Shanghai Yanpu Metal | Nanjing Putian vs. Beijing HuaYuanYiTong Thermal |
| Sinocelltech vs. Ming Yang Smart | Sinocelltech vs. 159681 | Sinocelltech vs. 159005 | Sinocelltech vs. Loctek Ergonomic Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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