Correlation Between Nanxing Furniture and Minmetals Capital
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Minmetals Capital Co, you can compare the effects of market volatilities on Nanxing Furniture and Minmetals Capital 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 Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Minmetals Capital.
Diversification Opportunities for Nanxing Furniture and Minmetals Capital
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanxing and Minmetals is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital 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 Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Minmetals Capital go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Minmetals Capital
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.03 times more return on investment than Minmetals Capital. However, Nanxing Furniture is 1.03 times more volatile than Minmetals Capital Co. It trades about 0.12 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.1 per unit of risk. If you would invest 1,092 in Nanxing Furniture Machinery on November 3, 2024 and sell it today you would earn a total of 657.00 from holding Nanxing Furniture Machinery or generate 60.16% 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. Minmetals Capital Co
Performance |
| Timeline |
| Nanxing Furniture |
| Minmetals Capital |
Nanxing Furniture and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Minmetals Capital
The main advantage of trading using opposite Nanxing Furniture and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Nanxing Furniture vs. Kontour Medical Technology | Nanxing Furniture vs. Allgens Medical Technology | Nanxing Furniture vs. Chison Medical Technologies | Nanxing Furniture vs. Chinese Universe Publishing |
| Minmetals Capital vs. Heilongjiang Transport Development | Minmetals Capital vs. Chengdu Xinzhu RoadBridge | Minmetals Capital vs. Jiangsu Xinri E Vehicle | Minmetals Capital vs. Sinomach Automobile Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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