Correlation Between Sinotrans and Nanjing Putian
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By analyzing existing cross correlation between Sinotrans Ltd Class and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Sinotrans 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 Sinotrans with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Nanjing Putian.
Diversification Opportunities for Sinotrans and Nanjing Putian
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinotrans and Nanjing is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class 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 Sinotrans 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 Sinotrans Ltd Class 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 Sinotrans i.e., Sinotrans and Nanjing Putian go up and down completely randomly.
Pair Corralation between Sinotrans and Nanjing Putian
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.62 times more return on investment than Nanjing Putian. However, Sinotrans Ltd Class is 1.61 times less risky than Nanjing Putian. It trades about 0.04 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.02 per unit of risk. If you would invest 390.00 in Sinotrans Ltd Class on October 16, 2024 and sell it today you would earn a total of 119.00 from holding Sinotrans Ltd Class or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sinotrans Ltd Class vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Sinotrans Class |
| Nanjing Putian Telec |
Sinotrans and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinotrans and Nanjing Putian
The main advantage of trading using opposite Sinotrans and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans 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.| Sinotrans vs. Shandong Sinoglory Health | Sinotrans vs. China Reform Health | Sinotrans vs. Xiangyang Automobile Bearing | Sinotrans vs. Healthcare Co |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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