Correlation Between Shanghai CEO and Nanjing Putian
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By analyzing existing cross correlation between Shanghai CEO Environmental and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shanghai CEO 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 Shanghai CEO with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Nanjing Putian.
Diversification Opportunities for Shanghai CEO and Nanjing Putian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Nanjing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental 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 Shanghai CEO 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 Shanghai CEO Environmental 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 Shanghai CEO i.e., Shanghai CEO and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shanghai CEO and Nanjing Putian
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai CEO Environmental is 1.55 times less risky than Nanjing Putian. The stock trades about -0.28 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Nanjing Putian Telecommunications on October 17, 2024 and sell it today you would lose (40.00) from holding Nanjing Putian Telecommunications or give up 9.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shanghai CEO Environ |
| Nanjing Putian Telec |
Shanghai CEO and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Nanjing Putian
The main advantage of trading using opposite Shanghai CEO and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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.| Shanghai CEO vs. Ingenic Semiconductor | Shanghai CEO vs. AVIC Fund Management | Shanghai CEO vs. Puya Semiconductor Shanghai | Shanghai CEO vs. Will Semiconductor Co |
| Nanjing Putian vs. Kangxin New Materials | Nanjing Putian vs. Cangzhou Mingzhu Plastic | Nanjing Putian vs. Hangzhou Gaoxin Rubber | Nanjing Putian vs. Western Metal Materials |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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