Correlation Between Nanxing Furniture and Shenzhen Noposion
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Nanxing Furniture and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Shenzhen Noposion.
Diversification Opportunities for Nanxing Furniture and Shenzhen Noposion
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanxing and Shenzhen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Shenzhen Noposion
Assuming the 90 days trading horizon Nanxing Furniture is expected to generate 1.01 times less return on investment than Shenzhen Noposion. In addition to that, Nanxing Furniture is 1.26 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.1 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.13 per unit of volatility. If you would invest 685.00 in Shenzhen Noposion Agrochemicals on October 18, 2024 and sell it today you would earn a total of 337.00 from holding Shenzhen Noposion Agrochemicals or generate 49.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Nanxing Furniture |
| Shenzhen Noposion |
Nanxing Furniture and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Shenzhen Noposion
The main advantage of trading using opposite Nanxing Furniture and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Nanxing Furniture vs. Giantec Semiconductor Corp | Nanxing Furniture vs. Chenzhou Jingui Silver | Nanxing Furniture vs. Shanghai V Test Semiconductor | Nanxing Furniture vs. Thinkon Semiconductor Jinzhou |
| Shenzhen Noposion vs. Uroica Mining Safety | Shenzhen Noposion vs. Shantui Construction Machinery | Shenzhen Noposion vs. Nanxing Furniture Machinery | Shenzhen Noposion vs. Spring Airlines Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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