Correlation Between Shenzhen Changfang and Nanjing Putian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Changfang Light and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shenzhen Changfang 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 Shenzhen Changfang with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Nanjing Putian.
Diversification Opportunities for Shenzhen Changfang and Nanjing Putian
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Nanjing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light 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 Shenzhen Changfang 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 Shenzhen Changfang Light 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 Shenzhen Changfang i.e., Shenzhen Changfang and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Nanjing Putian
Assuming the 90 days trading horizon Shenzhen Changfang is expected to generate 2.39 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Shenzhen Changfang Light is 1.17 times less risky than Nanjing Putian. It trades about 0.04 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Nanjing Putian Telecommunications on September 14, 2024 and sell it today you would earn a total of 194.00 from holding Nanjing Putian Telecommunications or generate 79.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen Changfang Light vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shenzhen Changfang Light |
| Nanjing Putian Telec |
Shenzhen Changfang and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Changfang and Nanjing Putian
The main advantage of trading using opposite Shenzhen Changfang and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang 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.| Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. China Construction Bank | Shenzhen Changfang vs. Bank of China |
| Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |