Correlation Between Easyhome New and Nanxing Furniture
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By analyzing existing cross correlation between Easyhome New Retail and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Easyhome New 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 Easyhome New with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easyhome New and Nanxing Furniture.
Diversification Opportunities for Easyhome New and Nanxing Furniture
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Easyhome and Nanxing is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Easyhome New Retail and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Easyhome New 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 Easyhome New Retail 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 Easyhome New i.e., Easyhome New and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Easyhome New and Nanxing Furniture
Assuming the 90 days trading horizon Easyhome New is expected to generate 2.56 times less return on investment than Nanxing Furniture. But when comparing it to its historical volatility, Easyhome New Retail is 1.03 times less risky than Nanxing Furniture. It trades about 0.03 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,025 in Nanxing Furniture Machinery on November 3, 2024 and sell it today you would earn a total of 724.00 from holding Nanxing Furniture Machinery or generate 70.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easyhome New Retail vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Easyhome New Retail |
| Nanxing Furniture |
Easyhome New and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easyhome New and Nanxing Furniture
The main advantage of trading using opposite Easyhome New and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easyhome New 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.| Easyhome New vs. Chinese Universe Publishing | Easyhome New vs. COL Digital Publishing | Easyhome New vs. Wintao Communications Co | Easyhome New vs. Bank of Communications |
| Nanxing Furniture vs. Aba Chemicals Corp | Nanxing Furniture vs. Shandong Polymer Biochemicals | Nanxing Furniture vs. APT Medical | Nanxing Furniture vs. Guangdong Transtek Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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