Correlation Between HOB Biotech and Nanjing Putian
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By analyzing existing cross correlation between HOB Biotech Group and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on HOB Biotech 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 HOB Biotech with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Nanjing Putian.
Diversification Opportunities for HOB Biotech and Nanjing Putian
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOB and Nanjing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group 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 HOB Biotech 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 HOB Biotech Group 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 HOB Biotech i.e., HOB Biotech and Nanjing Putian go up and down completely randomly.
Pair Corralation between HOB Biotech and Nanjing Putian
Assuming the 90 days trading horizon HOB Biotech Group is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, HOB Biotech Group is 1.48 times less risky than Nanjing Putian. The stock trades about -0.12 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Nanjing Putian Telecommunications on October 24, 2024 and sell it today you would lose (23.00) from holding Nanjing Putian Telecommunications or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| HOB Biotech Group |
| Nanjing Putian Telec |
HOB Biotech and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Nanjing Putian
The main advantage of trading using opposite HOB Biotech and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech 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.| HOB Biotech vs. Xiamen Insight Investment | HOB Biotech vs. Changjiang Jinggong Steel | HOB Biotech vs. Eit Environmental Development | HOB Biotech vs. Vanfund Urban Investment |
| Nanjing Putian vs. Xiangyu Medical Co | Nanjing Putian vs. Shanghai V Test Semiconductor | Nanjing Putian vs. Thinkon Semiconductor Jinzhou | Nanjing Putian vs. Innovative Medical Management |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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