Correlation Between Jiangsu Financial and Nanxing Furniture
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Jiangsu Financial and Nanxing Furniture 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 Jiangsu Financial with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Nanxing Furniture.
Diversification Opportunities for Jiangsu Financial and Nanxing Furniture
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Nanxing is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Jiangsu Financial 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 Jiangsu Financial Leasing are associated (or correlated) with Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Jiangsu Financial i.e., Jiangsu Financial and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Nanxing Furniture
Assuming the 90 days trading horizon Jiangsu Financial is expected to generate 10.68 times less return on investment than Nanxing Furniture. But when comparing it to its historical volatility, Jiangsu Financial Leasing is 3.53 times less risky than Nanxing Furniture. It trades about 0.05 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Nanxing Furniture Machinery on November 1, 2024 and sell it today you would earn a total of 196.00 from holding Nanxing Furniture Machinery or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Nanxing Furniture |
Jiangsu Financial and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Nanxing Furniture
The main advantage of trading using opposite Jiangsu Financial and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Jiangsu Financial vs. Guangdong Wens Foodstuff | Jiangsu Financial vs. Dazhong Transportation Group | Jiangsu Financial vs. Shaanxi Broadcast TV | Jiangsu Financial vs. Xiwang Foodstuffs Co |
| Nanxing Furniture vs. Jiangsu Financial Leasing | Nanxing Furniture vs. Bohai Leasing Co | Nanxing Furniture vs. Beijing Kaiwen Education | Nanxing Furniture vs. Xinhua Winshare Publishing |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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