Correlation Between Nanxing Furniture and Marssenger Kitchenware
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Nanxing Furniture and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Marssenger Kitchenware.
Diversification Opportunities for Nanxing Furniture and Marssenger Kitchenware
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanxing and Marssenger is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Marssenger Kitchenware
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 0.91 times more return on investment than Marssenger Kitchenware. However, Nanxing Furniture Machinery is 1.09 times less risky than Marssenger Kitchenware. It trades about 0.04 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.03 per unit of risk. If you would invest 1,053 in Nanxing Furniture Machinery on September 26, 2024 and sell it today you would earn a total of 495.00 from holding Nanxing Furniture Machinery or generate 47.01% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Nanxing Furniture |
| Marssenger Kitchenware |
Nanxing Furniture and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Marssenger Kitchenware
The main advantage of trading using opposite Nanxing Furniture and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Nanxing Furniture vs. Bank of China | Nanxing Furniture vs. Kweichow Moutai Co | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Bank of Communications |
| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. Nanxing Furniture Machinery | Marssenger Kitchenware vs. Beijing Jiaman Dress | Marssenger Kitchenware vs. Jiaozuo Wanfang Aluminum |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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