Correlation Between Grinm Advanced and Nanjing Putian
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By analyzing existing cross correlation between Grinm Advanced Materials and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Grinm Advanced 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 Grinm Advanced with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grinm Advanced and Nanjing Putian.
Diversification Opportunities for Grinm Advanced and Nanjing Putian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grinm and Nanjing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Grinm Advanced Materials 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 Grinm Advanced 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 Grinm Advanced Materials 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 Grinm Advanced i.e., Grinm Advanced and Nanjing Putian go up and down completely randomly.
Pair Corralation between Grinm Advanced and Nanjing Putian
Assuming the 90 days trading horizon Grinm Advanced is expected to generate 1.27 times less return on investment than Nanjing Putian. In addition to that, Grinm Advanced is 1.07 times more volatile than Nanjing Putian Telecommunications. It trades about 0.13 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.18 per unit of volatility. If you would invest 199.00 in Nanjing Putian Telecommunications on November 2, 2024 and sell it today you would earn a total of 189.00 from holding Nanjing Putian Telecommunications or generate 94.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grinm Advanced Materials vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Grinm Advanced Materials |
| Nanjing Putian Telec |
Grinm Advanced and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grinm Advanced and Nanjing Putian
The main advantage of trading using opposite Grinm Advanced and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grinm Advanced 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.| Grinm Advanced vs. Dezhan HealthCare Co | Grinm Advanced vs. De Rucci Healthy | Grinm Advanced vs. BTG Hotels Group | Grinm Advanced vs. Guangzhou Dongfang Hotel |
| Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. Easyhome New Retail | Nanjing Putian vs. Anhui Deli Household | Nanjing Putian vs. New Hope Dairy |
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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