Correlation Between Dawning Information and Nanjing Putian
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By analyzing existing cross correlation between Dawning Information Industry and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Nanjing Putian.
Diversification Opportunities for Dawning Information and Nanjing Putian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and Nanjing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Nanjing Putian go up and down completely randomly.
Pair Corralation between Dawning Information and Nanjing Putian
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.29 times more return on investment than Nanjing Putian. However, Dawning Information is 1.29 times more volatile than Nanjing Putian Telecommunications. It trades about 0.3 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.12 per unit of risk. If you would invest 5,423 in Dawning Information Industry on August 29, 2024 and sell it today you would earn a total of 2,181 from holding Dawning Information Industry or generate 40.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Dawning Information |
| Nanjing Putian Telec |
Dawning Information and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Nanjing Putian
The main advantage of trading using opposite Dawning Information and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Luyin Investment Group | Dawning Information vs. Nuode Investment Co | Dawning Information vs. Xiandai Investment Co | Dawning Information vs. Hubei Geoway Investment |
| Nanjing Putian vs. China State Construction | Nanjing Putian vs. Huafa Industrial Co | Nanjing Putian vs. China International Capital | Nanjing Putian vs. Kweichow Moutai 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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