Correlation Between Datang Telecom and Nanjing Putian
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By analyzing existing cross correlation between Datang Telecom Technology and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Datang Telecom 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 Datang Telecom with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang Telecom and Nanjing Putian.
Diversification Opportunities for Datang Telecom and Nanjing Putian
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Datang and Nanjing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Datang Telecom Technology 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 Datang Telecom 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 Datang Telecom Technology 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 Datang Telecom i.e., Datang Telecom and Nanjing Putian go up and down completely randomly.
Pair Corralation between Datang Telecom and Nanjing Putian
Assuming the 90 days trading horizon Datang Telecom is expected to generate 4.12 times less return on investment than Nanjing Putian. In addition to that, Datang Telecom is 1.43 times more volatile than Nanjing Putian Telecommunications. It trades about 0.08 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.45 per unit of volatility. If you would invest 197.00 in Nanjing Putian Telecommunications on August 25, 2024 and sell it today you would earn a total of 240.00 from holding Nanjing Putian Telecommunications or generate 121.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang Telecom Technology vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Datang Telecom Technology |
| Nanjing Putian Telec |
Datang Telecom and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang Telecom and Nanjing Putian
The main advantage of trading using opposite Datang Telecom and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang Telecom 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.| Datang Telecom vs. Touchstone International Medical | Datang Telecom vs. Beijing Wandong Medical | Datang Telecom vs. China National Software | Datang Telecom vs. Winner Medical Co |
| Nanjing Putian vs. Shenzhen MYS Environmental | Nanjing Putian vs. AVIC Fund Management | Nanjing Putian vs. Shenzhen Bingchuan Network | Nanjing Putian vs. Penghua Shenzhen Energy |
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 Stocks Directory module to find actively traded stocks across global markets.
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