Correlation Between China State and Nanjing Putian
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By analyzing existing cross correlation between China State Construction and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on China State 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 China State with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Nanjing Putian.
Diversification Opportunities for China State and Nanjing Putian
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Nanjing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Nanjing Putian go up and down completely randomly.
Pair Corralation between China State and Nanjing Putian
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 2.22 times less risky than Nanjing Putian. The stock trades about -0.11 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Nanjing Putian Telecommunications on November 27, 2024 and sell it today you would earn a total of 2.00 from holding Nanjing Putian Telecommunications or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| China State Construction |
| Nanjing Putian Telec |
China State and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Nanjing Putian
The main advantage of trading using opposite China State and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International Co |
| Nanjing Putian vs. Cultural Investment Holdings | Nanjing Putian vs. Huawen Media Investment | Nanjing Putian vs. Fsilon Furnishing and | Nanjing Putian vs. Postal Savings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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