Correlation Between Nanjing Putian and Guocheng Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Putian Telecommunications and Guocheng Mining Co, you can compare the effects of market volatilities on Nanjing Putian and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Guocheng Mining.
Diversification Opportunities for Nanjing Putian and Guocheng Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Guocheng is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Guocheng Mining go up and down completely randomly.
Pair Corralation between Nanjing Putian and Guocheng Mining
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Guocheng Mining. In addition to that, Nanjing Putian is 1.01 times more volatile than Guocheng Mining Co. It trades about -0.08 of its total potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.01 per unit of volatility. If you would invest 1,395 in Guocheng Mining Co on September 25, 2024 and sell it today you would lose (16.00) from holding Guocheng Mining Co or give up 1.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Guocheng Mining Co
Performance |
Timeline |
Nanjing Putian Telec |
Guocheng Mining |
Nanjing Putian and Guocheng Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanjing Putian and Guocheng Mining
The main advantage of trading using opposite Nanjing Putian and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining'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 |
Guocheng Mining vs. China State Construction | Guocheng Mining vs. Poly Real Estate | Guocheng Mining vs. China Vanke Co | Guocheng Mining vs. China Merchants Shekou |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |