Correlation Between Anhui Xinhua and Nanjing Putian
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By analyzing existing cross correlation between Anhui Xinhua Media and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Anhui Xinhua 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 Anhui Xinhua with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Nanjing Putian.
Diversification Opportunities for Anhui Xinhua and Nanjing Putian
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Nanjing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media 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 Anhui Xinhua 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 Anhui Xinhua Media 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 Anhui Xinhua i.e., Anhui Xinhua and Nanjing Putian go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Nanjing Putian
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Xinhua Media is 2.16 times less risky than Nanjing Putian. The stock trades about -0.31 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Nanjing Putian Telecommunications on October 15, 2024 and sell it today you would lose (49.00) from holding Nanjing Putian Telecommunications or give up 11.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Anhui Xinhua Media |
| Nanjing Putian Telec |
Anhui Xinhua and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Nanjing Putian
The main advantage of trading using opposite Anhui Xinhua and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua 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.| Anhui Xinhua vs. Anhui Jianghuai Automobile | Anhui Xinhua vs. Suzhou Douson Drilling | Anhui Xinhua vs. Lootom Telcovideo Network | Anhui Xinhua vs. Shenzhen Topway Video |
| Nanjing Putian vs. Jiangsu Xinri E Vehicle | Nanjing Putian vs. Fuda Alloy Materials | Nanjing Putian vs. Suzhou Xingye Material | Nanjing Putian vs. Xiangyang Automobile Bearing |
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 Stocks Directory module to find actively traded stocks across global markets.
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