Correlation Between Hangzhou Gisway and Nanjing Putian
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By analyzing existing cross correlation between Hangzhou Gisway Information and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Hangzhou Gisway 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 Hangzhou Gisway with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Nanjing Putian.
Diversification Opportunities for Hangzhou Gisway and Nanjing Putian
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information 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 Hangzhou Gisway 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 Hangzhou Gisway Information 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 Hangzhou Gisway i.e., Hangzhou Gisway and Nanjing Putian go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Nanjing Putian
Assuming the 90 days trading horizon Hangzhou Gisway is expected to generate 5.87 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Hangzhou Gisway Information is 1.57 times less risky than Nanjing Putian. It trades about 0.06 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Nanjing Putian Telecommunications on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Nanjing Putian Telecommunications or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Nanjing Putian Telec |
Hangzhou Gisway and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Nanjing Putian
The main advantage of trading using opposite Hangzhou Gisway and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway 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.| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
| Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Yindu Kitchen Equipment | Nanjing Putian vs. Zhongrun Resources Investment | Nanjing Putian vs. Xiandai Investment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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