Correlation Between Nanxing Furniture and Beijing Kingsoft
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanxing Furniture Machinery and Beijing Kingsoft Office, you can compare the effects of market volatilities on Nanxing Furniture and Beijing Kingsoft 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 Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Beijing Kingsoft.
Diversification Opportunities for Nanxing Furniture and Beijing Kingsoft
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanxing and Beijing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office 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 Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Beijing Kingsoft
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 0.83 times more return on investment than Beijing Kingsoft. However, Nanxing Furniture Machinery is 1.2 times less risky than Beijing Kingsoft. It trades about 0.04 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.02 per unit of risk. If you would invest 1,232 in Nanxing Furniture Machinery on November 7, 2024 and sell it today you would earn a total of 517.00 from holding Nanxing Furniture Machinery or generate 41.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanxing Furniture Machinery vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Nanxing Furniture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Beijing Kingsoft Office |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Nanxing Furniture and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Beijing Kingsoft
The main advantage of trading using opposite Nanxing Furniture and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.The idea behind Nanxing Furniture Machinery and Beijing Kingsoft Office pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |