Correlation Between Nanxing Furniture and Shantui Construction
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Shantui Construction Machinery, you can compare the effects of market volatilities on Nanxing Furniture and Shantui Construction 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 Nanxing Furniture with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Shantui Construction.
Diversification Opportunities for Nanxing Furniture and Shantui Construction
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanxing and Shantui is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Nanxing Furniture 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 Nanxing Furniture Machinery are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Shantui Construction go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Shantui Construction
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to under-perform the Shantui Construction. In addition to that, Nanxing Furniture is 1.82 times more volatile than Shantui Construction Machinery. It trades about -0.21 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.07 per unit of volatility. If you would invest 971.00 in Shantui Construction Machinery on October 12, 2024 and sell it today you would earn a total of 23.00 from holding Shantui Construction Machinery or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Shantui Construction Machinery
Performance |
| Timeline |
| Nanxing Furniture |
| Shantui Construction |
Nanxing Furniture and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Shantui Construction
The main advantage of trading using opposite Nanxing Furniture and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Nanxing Furniture vs. Biwin Storage Technology | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Industrial and Commercial | Nanxing Furniture vs. China Construction Bank |
| Shantui Construction vs. BYD Co Ltd | Shantui Construction vs. China Mobile Limited | Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. Industrial and Commercial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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