Correlation Between Nanjing Putian and F5 Networks
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and F5 Networks, you can compare the effects of market volatilities on Nanjing Putian and F5 Networks 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 F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and F5 Networks.
Diversification Opportunities for Nanjing Putian and F5 Networks
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanjing and FFIV is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks 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 F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and F5 Networks go up and down completely randomly.
Pair Corralation between Nanjing Putian and F5 Networks
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the F5 Networks. In addition to that, Nanjing Putian is 2.2 times more volatile than F5 Networks. It trades about -0.02 of its total potential returns per unit of risk. F5 Networks is currently generating about 0.24 per unit of volatility. If you would invest 23,999 in F5 Networks on November 18, 2024 and sell it today you would earn a total of 7,019 from holding F5 Networks or generate 29.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.72% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. F5 Networks
Performance |
| Timeline |
| Nanjing Putian Telec |
| F5 Networks |
Nanjing Putian and F5 Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and F5 Networks
The main advantage of trading using opposite Nanjing Putian and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.| Nanjing Putian vs. Vanfund Urban Investment | Nanjing Putian vs. Zoje Resources Investment | Nanjing Putian vs. CSSC Offshore Marine | Nanjing Putian vs. Yoantion Industrial IncLtd |
| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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