Correlation Between Nanxing Furniture and Xinhu Zhongbao
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Xinhu Zhongbao Co, you can compare the effects of market volatilities on Nanxing Furniture and Xinhu Zhongbao 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 Xinhu Zhongbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Xinhu Zhongbao.
Diversification Opportunities for Nanxing Furniture and Xinhu Zhongbao
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanxing and Xinhu is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Xinhu Zhongbao Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhu Zhongbao 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 Xinhu Zhongbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhu Zhongbao has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Xinhu Zhongbao go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Xinhu Zhongbao
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 3.21 times more return on investment than Xinhu Zhongbao. However, Nanxing Furniture is 3.21 times more volatile than Xinhu Zhongbao Co. It trades about 0.27 of its potential returns per unit of risk. Xinhu Zhongbao Co is currently generating about 0.1 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. Xinhu Zhongbao Co
Performance |
| Timeline |
| Nanxing Furniture |
| Xinhu Zhongbao |
Nanxing Furniture and Xinhu Zhongbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Xinhu Zhongbao
The main advantage of trading using opposite Nanxing Furniture and Xinhu Zhongbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Xinhu Zhongbao 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 Xinhu Zhongbao will offset losses from the drop in Xinhu Zhongbao's long position.| Nanxing Furniture vs. Bsm Chemical Co | Nanxing Furniture vs. Chongqing Brewery Co | Nanxing Furniture vs. Anhui Huaheng Biotechnology | Nanxing Furniture vs. Sichuan Hebang Biotechnology |
| Xinhu Zhongbao vs. Industrial and Commercial | Xinhu Zhongbao vs. Agricultural Bank of | Xinhu Zhongbao vs. China Construction Bank | Xinhu Zhongbao vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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