Correlation Between Nanxing Furniture and GUOMAI Culture
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By analyzing existing cross correlation between Nanxing Furniture Machinery and GUOMAI Culture Media, you can compare the effects of market volatilities on Nanxing Furniture and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and GUOMAI Culture.
Diversification Opportunities for Nanxing Furniture and GUOMAI Culture
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nanxing and GUOMAI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Nanxing Furniture and GUOMAI Culture
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.16 times more return on investment than GUOMAI Culture. However, Nanxing Furniture is 1.16 times more volatile than GUOMAI Culture Media. It trades about 0.1 of its potential returns per unit of risk. GUOMAI Culture Media is currently generating about -0.07 per unit of risk. If you would invest 1,519 in Nanxing Furniture Machinery on October 30, 2024 and sell it today you would earn a total of 230.00 from holding Nanxing Furniture Machinery or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. GUOMAI Culture Media
Performance |
| Timeline |
| Nanxing Furniture |
| GUOMAI Culture Media |
Nanxing Furniture and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and GUOMAI Culture
The main advantage of trading using opposite Nanxing Furniture and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Industrial and Commercial | Nanxing Furniture vs. China Petroleum Chemical | Nanxing Furniture vs. China Construction Bank |
| GUOMAI Culture vs. Bus Online Co | GUOMAI Culture vs. Holitech Technology Co | GUOMAI Culture vs. Gome Telecom Equipment | GUOMAI Culture vs. Cultural Investment Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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