Correlation Between Nanxing Furniture and Shandong Sinoglory
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Shandong Sinoglory Health, you can compare the effects of market volatilities on Nanxing Furniture and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Shandong Sinoglory.
Diversification Opportunities for Nanxing Furniture and Shandong Sinoglory
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanxing and Shandong is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Shandong Sinoglory
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 2.11 times more return on investment than Shandong Sinoglory. However, Nanxing Furniture is 2.11 times more volatile than Shandong Sinoglory Health. It trades about 0.1 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.05 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Nanxing Furniture |
| Shandong Sinoglory Health |
Nanxing Furniture and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Shandong Sinoglory
The main advantage of trading using opposite Nanxing Furniture and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory'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 |
| Shandong Sinoglory vs. Guangzhou Ruoyuchen Information | Shandong Sinoglory vs. Hygon Information Technology | Shandong Sinoglory vs. Anhui Transport Consulting | Shandong Sinoglory vs. Emdoor Information 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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