Correlation Between Nanxing Furniture and Hangzhou EZVIZ
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Nanxing Furniture and Hangzhou EZVIZ 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 Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Hangzhou EZVIZ.
Diversification Opportunities for Nanxing Furniture and Hangzhou EZVIZ
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanxing and Hangzhou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network 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 Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Hangzhou EZVIZ
Assuming the 90 days trading horizon Nanxing Furniture is expected to generate 1.02 times less return on investment than Hangzhou EZVIZ. In addition to that, Nanxing Furniture is 1.02 times more volatile than Hangzhou EZVIZ Network. It trades about 0.04 of its total potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about 0.04 per unit of volatility. If you would invest 2,020 in Hangzhou EZVIZ Network on September 26, 2024 and sell it today you would earn a total of 1,021 from holding Hangzhou EZVIZ Network or generate 50.54% 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. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Nanxing Furniture |
| Hangzhou EZVIZ Network |
Nanxing Furniture and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanxing Furniture and Hangzhou EZVIZ
The main advantage of trading using opposite Nanxing Furniture and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Hangzhou EZVIZ 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 Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Nanxing Furniture vs. Bank of China | Nanxing Furniture vs. Kweichow Moutai Co | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Bank of Communications |
| Hangzhou EZVIZ vs. Nanxing Furniture Machinery | Hangzhou EZVIZ vs. Guangzhou Automobile Group | Hangzhou EZVIZ vs. Senci Electric Machinery | Hangzhou EZVIZ vs. Lutian Machinery 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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