Correlation Between Nanjing Putian and Yantai North
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Yantai North Andre, you can compare the effects of market volatilities on Nanjing Putian and Yantai North 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 Nanjing Putian with a short position of Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Yantai North.
Diversification Opportunities for Nanjing Putian and Yantai North
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Yantai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre and Nanjing Putian 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 Nanjing Putian Telecommunications are associated (or correlated) with Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Yantai North go up and down completely randomly.
Pair Corralation between Nanjing Putian and Yantai North
Assuming the 90 days trading horizon Nanjing Putian is expected to generate 1.04 times less return on investment than Yantai North. In addition to that, Nanjing Putian is 1.08 times more volatile than Yantai North Andre. It trades about 0.04 of its total potential returns per unit of risk. Yantai North Andre is currently generating about 0.04 per unit of volatility. If you would invest 1,864 in Yantai North Andre on September 24, 2024 and sell it today you would earn a total of 921.00 from holding Yantai North Andre or generate 49.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Yantai North Andre
Performance |
Timeline |
Nanjing Putian Telec |
Yantai North Andre |
Nanjing Putian and Yantai North Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanjing Putian and Yantai North
The main advantage of trading using opposite Nanjing Putian and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North's long position.Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China |
Yantai North vs. Nanjing Putian Telecommunications | Yantai North vs. Tianjin Realty Development | Yantai North vs. Kangyue Technology Co | Yantai North vs. Shenzhen Hifuture Electric |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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