Correlation Between Shanghai Shibei and Nanjing Putian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shanghai Shibei 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 Shanghai Shibei with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Nanjing Putian.
Diversification Opportunities for Shanghai Shibei and Nanjing Putian
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Nanjing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech 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 Shanghai Shibei 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 Shanghai Shibei Hi Tech 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 Shanghai Shibei i.e., Shanghai Shibei and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Nanjing Putian
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to under-perform the Nanjing Putian. In addition to that, Shanghai Shibei is 1.09 times more volatile than Nanjing Putian Telecommunications. It trades about -0.21 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.2 per unit of volatility. If you would invest 436.00 in Nanjing Putian Telecommunications on October 12, 2024 and sell it today you would lose (74.00) from holding Nanjing Putian Telecommunications or give up 16.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Nanjing Putian Telec |
Shanghai Shibei and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Nanjing Putian
The main advantage of trading using opposite Shanghai Shibei and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei 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.| Shanghai Shibei vs. Ming Yang Smart | Shanghai Shibei vs. 159681 | Shanghai Shibei vs. 159005 | Shanghai Shibei vs. Loctek Ergonomic Technology |
| Nanjing Putian vs. Cultural Investment Holdings | Nanjing Putian vs. Jiangsu Yanghe Brewery | Nanjing Putian vs. Tieling Newcity Investment | Nanjing Putian vs. Dareway Software 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |