Correlation Between Industrial and Nanjing Putian
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By analyzing existing cross correlation between Industrial and Commercial and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Nanjing Putian.
Diversification Opportunities for Industrial and Nanjing Putian
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Nanjing is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Nanjing Putian go up and down completely randomly.
Pair Corralation between Industrial and Nanjing Putian
Assuming the 90 days trading horizon Industrial is expected to generate 7.69 times less return on investment than Nanjing Putian. But when comparing it to its historical volatility, Industrial and Commercial is 4.4 times less risky than Nanjing Putian. It trades about 0.11 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Nanjing Putian Telecommunications on August 30, 2024 and sell it today you would earn a total of 69.00 from holding Nanjing Putian Telecommunications or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Industrial and Commercial |
| Nanjing Putian Telec |
Industrial and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Nanjing Putian
The main advantage of trading using opposite Industrial and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. OBiO Technology Corp | Industrial vs. Guangzhou KingTeller Technology | Industrial vs. Kuangda Technology Group | Industrial vs. Tonghua Grape Wine |
| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Bank of China | Nanjing Putian vs. China Construction Bank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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