Correlation Between Sportsoul and Nanxing Furniture
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By analyzing existing cross correlation between Sportsoul Co Ltd and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Sportsoul 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 Sportsoul with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Nanxing Furniture.
Diversification Opportunities for Sportsoul and Nanxing Furniture
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sportsoul and Nanxing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Sportsoul 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 Sportsoul Co Ltd 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 Sportsoul i.e., Sportsoul and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Sportsoul and Nanxing Furniture
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the Nanxing Furniture. In addition to that, Sportsoul is 1.17 times more volatile than Nanxing Furniture Machinery. It trades about -0.25 of its total potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about -0.19 per unit of volatility. If you would invest 1,694 in Nanxing Furniture Machinery on October 11, 2024 and sell it today you would lose (229.00) from holding Nanxing Furniture Machinery or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Sportsoul |
| Nanxing Furniture |
Sportsoul and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Nanxing Furniture
The main advantage of trading using opposite Sportsoul and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul 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.| Sportsoul vs. Zhongzhu Medical Holdings | Sportsoul vs. Shenzhen Glory Medical | Sportsoul vs. Hengkang Medical Group | Sportsoul vs. Linewell Software Co |
| Nanxing Furniture vs. Sportsoul Co Ltd | Nanxing Furniture vs. Servyou Software Group | Nanxing Furniture vs. Peoples Insurance of | Nanxing Furniture vs. Fujian Boss Software |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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