Correlation Between Cinda Securities and Nanxing Furniture
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By analyzing existing cross correlation between Cinda Securities Co and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Nanxing Furniture.
Diversification Opportunities for Cinda Securities and Nanxing Furniture
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cinda and Nanxing is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Cinda Securities and Nanxing Furniture
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Nanxing Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.4 times less risky than Nanxing Furniture. The stock trades about -0.28 of its potential returns per unit of risk. The Nanxing Furniture Machinery is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,578 in Nanxing Furniture Machinery on October 16, 2024 and sell it today you would lose (175.00) from holding Nanxing Furniture Machinery or give up 11.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Cinda Securities |
| Nanxing Furniture |
Cinda Securities and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Nanxing Furniture
The main advantage of trading using opposite Cinda Securities and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. Nanxing Furniture Machinery | Cinda Securities vs. Masterwork Machinery | Cinda Securities vs. Zhejiang Yinlun Machinery | Cinda Securities vs. Kidswant Children Products |
| Nanxing Furniture vs. Holitech Technology Co | Nanxing Furniture vs. COL Digital Publishing | Nanxing Furniture vs. CGN Nuclear Technology | Nanxing Furniture vs. Kuang Chi Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
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