Correlation Between Aba Chemicals and Nanjing Putian
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By analyzing existing cross correlation between Aba Chemicals Corp and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Nanjing Putian.
Diversification Opportunities for Aba Chemicals and Nanjing Putian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Nanjing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Nanjing Putian go up and down completely randomly.
Pair Corralation between Aba Chemicals and Nanjing Putian
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Nanjing Putian. In addition to that, Aba Chemicals is 1.01 times more volatile than Nanjing Putian Telecommunications. It trades about -0.01 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.04 per unit of volatility. If you would invest 318.00 in Nanjing Putian Telecommunications on September 12, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 36.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Aba Chemicals Corp |
| Nanjing Putian Telec |
Aba Chemicals and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Nanjing Putian
The main advantage of trading using opposite Aba Chemicals and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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