Correlation Between Nanxing Furniture and Taiji Computer
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Taiji Computer Corp, you can compare the effects of market volatilities on Nanxing Furniture and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Taiji Computer.
Diversification Opportunities for Nanxing Furniture and Taiji Computer
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanxing and Taiji is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Taiji Computer go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Taiji Computer
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 0.92 times more return on investment than Taiji Computer. However, Nanxing Furniture Machinery is 1.08 times less risky than Taiji Computer. It trades about 0.03 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.02 per unit of risk. If you would invest 1,389 in Nanxing Furniture Machinery on October 27, 2024 and sell it today you would earn a total of 306.00 from holding Nanxing Furniture Machinery or generate 22.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Taiji Computer Corp
Performance |
| Timeline |
| Nanxing Furniture |
| Taiji Computer Corp |
Nanxing Furniture and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Taiji Computer
The main advantage of trading using opposite Nanxing Furniture and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Nanxing Furniture vs. Xinxiang Chemical Fiber | Nanxing Furniture vs. Xilong Chemical Co | Nanxing Furniture vs. Hengli Industrial Development | Nanxing Furniture vs. Guizhou Chanhen Chemical |
| Taiji Computer vs. Elite Color Environmental | Taiji Computer vs. Northern United Publishing | Taiji Computer vs. Anyang Iron Steel | Taiji Computer vs. Shenzhen MYS Environmental |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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