Correlation Between Nanxing Furniture and Guangdong Marubi
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Nanxing Furniture and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Guangdong Marubi.
Diversification Opportunities for Nanxing Furniture and Guangdong Marubi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nanxing and Guangdong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Guangdong Marubi
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.41 times more return on investment than Guangdong Marubi. However, Nanxing Furniture is 1.41 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.06 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.07 per unit of risk. If you would invest 1,268 in Nanxing Furniture Machinery on October 15, 2024 and sell it today you would earn a total of 145.00 from holding Nanxing Furniture Machinery or generate 11.44% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Nanxing Furniture |
| Guangdong Marubi Bio |
Nanxing Furniture and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Guangdong Marubi
The main advantage of trading using opposite Nanxing Furniture and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Nanxing Furniture vs. Holitech Technology Co | Nanxing Furniture vs. COL Digital Publishing | Nanxing Furniture vs. CGN Nuclear Technology | Nanxing Furniture vs. Kuang Chi Technologies |
| Guangdong Marubi vs. Jiangsu Financial Leasing | Guangdong Marubi vs. Ningbo Tech Bank Co | Guangdong Marubi vs. Shanghai Ziyan Foods | Guangdong Marubi vs. HeNan Splendor Science |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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