Correlation Between Amlogic Shanghai and Nanjing Putian
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By analyzing existing cross correlation between Amlogic Shanghai Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Amlogic Shanghai 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 Amlogic Shanghai with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amlogic Shanghai and Nanjing Putian.
Diversification Opportunities for Amlogic Shanghai and Nanjing Putian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amlogic and Nanjing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amlogic Shanghai Co 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 Amlogic Shanghai 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 Amlogic Shanghai Co 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 Amlogic Shanghai i.e., Amlogic Shanghai and Nanjing Putian go up and down completely randomly.
Pair Corralation between Amlogic Shanghai and Nanjing Putian
Assuming the 90 days trading horizon Amlogic Shanghai is expected to generate 1.95 times less return on investment than Nanjing Putian. In addition to that, Amlogic Shanghai is 1.13 times more volatile than Nanjing Putian Telecommunications. It trades about 0.15 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.33 per unit of volatility. If you would invest 191.00 in Nanjing Putian Telecommunications on September 14, 2024 and sell it today you would earn a total of 246.00 from holding Nanjing Putian Telecommunications or generate 128.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
Amlogic Shanghai Co vs. Nanjing Putian Telecommunicati
Performance |
Timeline |
Amlogic Shanghai |
Nanjing Putian Telec |
Amlogic Shanghai and Nanjing Putian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amlogic Shanghai and Nanjing Putian
The main advantage of trading using opposite Amlogic Shanghai and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amlogic Shanghai 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.Amlogic Shanghai vs. Nanjing Putian Telecommunications | Amlogic Shanghai vs. Tianjin Realty Development | Amlogic Shanghai vs. Kangyue Technology Co | Amlogic Shanghai vs. Shenzhen Hifuture Electric |
Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Bank of China | Nanjing Putian vs. Agricultural Bank of |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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