Correlation Between YLZ Information and Nanjing Putian
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By analyzing existing cross correlation between YLZ Information Tech and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on YLZ Information and Nanjing Putian 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 YLZ Information with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Nanjing Putian.
Diversification Opportunities for YLZ Information and Nanjing Putian
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and Nanjing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec and YLZ Information 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 YLZ Information Tech are associated (or correlated) with Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of YLZ Information i.e., YLZ Information and Nanjing Putian go up and down completely randomly.
Pair Corralation between YLZ Information and Nanjing Putian
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, YLZ Information Tech is 1.11 times less risky than Nanjing Putian. The stock trades about -0.01 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Nanjing Putian Telecommunications on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Nanjing Putian Telecommunications or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
YLZ Information Tech vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| YLZ Information Tech |
| Nanjing Putian Telec |
YLZ Information and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and Nanjing Putian
The main advantage of trading using opposite YLZ Information and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| YLZ Information vs. China State Construction | YLZ Information vs. Huafa Industrial Co | YLZ Information vs. China International Capital | YLZ Information vs. Kweichow Moutai Co |
| Nanjing Putian vs. China State Construction | Nanjing Putian vs. Huafa Industrial Co | Nanjing Putian vs. China International Capital | Nanjing Putian vs. Kweichow Moutai Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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