Correlation Between Nanxing Furniture and De Rucci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanxing Furniture Machinery and De Rucci Healthy, you can compare the effects of market volatilities on Nanxing Furniture and De Rucci 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 De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and De Rucci.
Diversification Opportunities for Nanxing Furniture and De Rucci
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanxing and 001323 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy 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 De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and De Rucci go up and down completely randomly.
Pair Corralation between Nanxing Furniture and De Rucci
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.65 times more return on investment than De Rucci. However, Nanxing Furniture is 1.65 times more volatile than De Rucci Healthy. It trades about 0.15 of its potential returns per unit of risk. De Rucci Healthy is currently generating about 0.22 per unit of risk. If you would invest 1,263 in Nanxing Furniture Machinery on August 28, 2024 and sell it today you would earn a total of 322.00 from holding Nanxing Furniture Machinery or generate 25.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. De Rucci Healthy
Performance |
| Timeline |
| Nanxing Furniture |
| De Rucci Healthy |
Nanxing Furniture and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and De Rucci
The main advantage of trading using opposite Nanxing Furniture and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci'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 |
| De Rucci vs. Longmaster Information Tech | De Rucci vs. Zhuhai Comleader Information | De Rucci vs. AVCON Information Tech | De Rucci vs. Changchun BCHT Biotechnology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |