Correlation Between Bohai Leasing and Nanxing Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bohai Leasing Co and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Bohai Leasing and Nanxing Furniture 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 Bohai Leasing with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Nanxing Furniture.
Diversification Opportunities for Bohai Leasing and Nanxing Furniture
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bohai and Nanxing is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Bohai Leasing and Nanxing Furniture
Assuming the 90 days trading horizon Bohai Leasing Co is expected to under-perform the Nanxing Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Bohai Leasing Co is 2.66 times less risky than Nanxing Furniture. The stock trades about -0.14 of its potential returns per unit of risk. The Nanxing Furniture Machinery is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Nanxing Furniture Machinery on November 1, 2024 and sell it today you would earn a total of 196.00 from holding Nanxing Furniture Machinery or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Bohai Leasing |
| Nanxing Furniture |
Bohai Leasing and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Nanxing Furniture
The main advantage of trading using opposite Bohai Leasing and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Bohai Leasing vs. Shaanxi Energy Investment | Bohai Leasing vs. Cultural Investment Holdings | Bohai Leasing vs. Hunan Investment Group | Bohai Leasing vs. Zhongrun Resources Investment |
| Nanxing Furniture vs. Jiangsu Financial Leasing | Nanxing Furniture vs. Bohai Leasing Co | Nanxing Furniture vs. Beijing Kaiwen Education | Nanxing Furniture vs. Xinhua Winshare Publishing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |