Correlation Between Eyebright Medical and Nanjing Putian
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By analyzing existing cross correlation between Eyebright Medical Technology and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Nanjing Putian.
Diversification Opportunities for Eyebright Medical and Nanjing Putian
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eyebright and Nanjing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology 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 Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and Nanjing Putian go up and down completely randomly.
Pair Corralation between Eyebright Medical and Nanjing Putian
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to under-perform the Nanjing Putian. In addition to that, Eyebright Medical is 1.01 times more volatile than Nanjing Putian Telecommunications. It trades about -0.04 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.08 per unit of volatility. If you would invest 246.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 214.00 from holding Nanjing Putian Telecommunications or generate 86.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Eyebright Medical |
| Nanjing Putian Telec |
Eyebright Medical and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Nanjing Putian
The main advantage of trading using opposite Eyebright Medical and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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.| Eyebright Medical vs. Nanjing Putian Telecommunications | Eyebright Medical vs. Shenzhen Hifuture Electric | Eyebright Medical vs. Tianjin Realty Development | Eyebright Medical vs. Shenyang Huitian Thermal |
| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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