Correlation Between Nanjing Putian and Circuit Fabology
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on Nanjing Putian and Circuit Fabology 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 Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Circuit Fabology.
Diversification Opportunities for Nanjing Putian and Circuit Fabology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Circuit is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic 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 Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Circuit Fabology go up and down completely randomly.
Pair Corralation between Nanjing Putian and Circuit Fabology
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 0.94 times more return on investment than Circuit Fabology. However, Nanjing Putian Telecommunications is 1.06 times less risky than Circuit Fabology. It trades about 0.03 of its potential returns per unit of risk. Circuit Fabology Microelectronics is currently generating about 0.0 per unit of risk. If you would invest 356.00 in Nanjing Putian Telecommunications on August 26, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing Putian Telecommunications or generate 22.75% 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. Circuit Fabology Microelectron
Performance |
| Timeline |
| Nanjing Putian Telec |
| Circuit Fabology Mic |
Nanjing Putian and Circuit Fabology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Circuit Fabology
The main advantage of trading using opposite Nanjing Putian and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology's long position.| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
| Circuit Fabology vs. Nanjing Putian Telecommunications | Circuit Fabology vs. Shenzhen Hifuture Electric | Circuit Fabology vs. Shenyang Huitian Thermal | Circuit Fabology vs. Jiangsu Xinning Modern |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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