Correlation Between Sichuan Hebang and Nanjing Putian
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Sichuan Hebang 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 Sichuan Hebang with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Nanjing Putian.
Diversification Opportunities for Sichuan Hebang and Nanjing Putian
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and Nanjing is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology 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 Sichuan Hebang 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 Sichuan Hebang Biotechnology 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 Sichuan Hebang i.e., Sichuan Hebang and Nanjing Putian go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Nanjing Putian
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 3.11 times less risky than Nanjing Putian. The stock trades about -0.16 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Nanjing Putian Telecommunications on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Nanjing Putian Telecommunications or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Nanjing Putian Telec |
Sichuan Hebang and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Nanjing Putian
The main advantage of trading using opposite Sichuan Hebang and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang 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.| Sichuan Hebang vs. Dongguan Tarry Electronics | Sichuan Hebang vs. Nantong Haixing Electronics | Sichuan Hebang vs. Caihong Display Devices | Sichuan Hebang vs. Success Electronics |
| Nanjing Putian vs. Sunny Loan Top | Nanjing Putian vs. Shengda Mining Co | Nanjing Putian vs. North Copper Shanxi | Nanjing Putian vs. Jiangsu Yueda Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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