Correlation Between Nanxing Furniture and Northking Information
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Northking Information Technology, you can compare the effects of market volatilities on Nanxing Furniture and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Northking Information.
Diversification Opportunities for Nanxing Furniture and Northking Information
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanxing and Northking is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Northking Information go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Northking Information
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.39 times more return on investment than Northking Information. However, Nanxing Furniture is 1.39 times more volatile than Northking Information Technology. It trades about 0.04 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.14 per unit of risk. If you would invest 1,516 in Nanxing Furniture Machinery on October 19, 2024 and sell it today you would earn a total of 26.00 from holding Nanxing Furniture Machinery or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Northking Information Technolo
Performance |
| Timeline |
| Nanxing Furniture |
| Northking Information |
Nanxing Furniture and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Northking Information
The main advantage of trading using opposite Nanxing Furniture and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information'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 |
| Northking Information vs. Shaanxi Broadcast TV | Northking Information vs. Guizhou BroadcastingTV Info | Northking Information vs. Porton Fine Chemicals | Northking Information vs. Nanxing Furniture Machinery |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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