Correlation Between Nanxing Furniture and SSAW Hotels
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By analyzing existing cross correlation between Nanxing Furniture Machinery and SSAW Hotels Resorts, you can compare the effects of market volatilities on Nanxing Furniture and SSAW Hotels 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 SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and SSAW Hotels.
Diversification Opportunities for Nanxing Furniture and SSAW Hotels
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanxing and SSAW is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts 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 SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and SSAW Hotels go up and down completely randomly.
Pair Corralation between Nanxing Furniture and SSAW Hotels
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.85 times more return on investment than SSAW Hotels. However, Nanxing Furniture is 1.85 times more volatile than SSAW Hotels Resorts. It trades about 0.27 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about 0.04 per unit of risk. If you would invest 1,406 in Nanxing Furniture Machinery on November 4, 2024 and sell it today you would earn a total of 343.00 from holding Nanxing Furniture Machinery or generate 24.4% 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. SSAW Hotels Resorts
Performance |
| Timeline |
| Nanxing Furniture |
| SSAW Hotels Resorts |
Nanxing Furniture and SSAW Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and SSAW Hotels
The main advantage of trading using opposite Nanxing Furniture and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.| Nanxing Furniture vs. Aba Chemicals Corp | Nanxing Furniture vs. Shandong Polymer Biochemicals | Nanxing Furniture vs. APT Medical | Nanxing Furniture vs. Guangdong Transtek Medical |
| SSAW Hotels vs. Ming Yang Smart | SSAW Hotels vs. 159681 | SSAW Hotels vs. 159005 | SSAW Hotels vs. Loctek Ergonomic Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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