Correlation Between Nanxing Furniture and Hubei Xingfa
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Nanxing Furniture and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Hubei Xingfa.
Diversification Opportunities for Nanxing Furniture and Hubei Xingfa
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nanxing and Hubei is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Hubei Xingfa
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 2.62 times more return on investment than Hubei Xingfa. However, Nanxing Furniture is 2.62 times more volatile than Hubei Xingfa Chemicals. It trades about 0.11 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.05 per unit of risk. If you would invest 1,558 in Nanxing Furniture Machinery on October 28, 2024 and sell it today you would earn a total of 137.00 from holding Nanxing Furniture Machinery or generate 8.79% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Nanxing Furniture |
| Hubei Xingfa Chemicals |
Nanxing Furniture and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Hubei Xingfa
The main advantage of trading using opposite Nanxing Furniture and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Nanxing Furniture vs. Peoples Insurance of | Nanxing Furniture vs. Will Semiconductor Co | Nanxing Furniture vs. Porton Fine Chemicals | Nanxing Furniture vs. Miracll Chemicals Co |
| Hubei Xingfa vs. Maxvision Technology Corp | Hubei Xingfa vs. Holitech Technology Co | Hubei Xingfa vs. Uxi Unicomp Technology | Hubei Xingfa vs. Olympic Circuit 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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