Correlation Between Jason Furniture and Nanxing Furniture
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By analyzing existing cross correlation between Jason Furniture and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Jason Furniture 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 Jason Furniture with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jason Furniture and Nanxing Furniture.
Diversification Opportunities for Jason Furniture and Nanxing Furniture
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jason and Nanxing is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jason Furniture and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Jason 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 Jason Furniture 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 Jason Furniture i.e., Jason Furniture and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Jason Furniture and Nanxing Furniture
Assuming the 90 days trading horizon Jason Furniture is expected to under-perform the Nanxing Furniture. But the stock apears to be less risky and, when comparing its historical volatility, Jason Furniture is 1.31 times less risky than Nanxing Furniture. The stock trades about -0.03 of its potential returns per unit of risk. The Nanxing Furniture Machinery is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,101 in Nanxing Furniture Machinery on October 13, 2024 and sell it today you would earn a total of 312.00 from holding Nanxing Furniture Machinery or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jason Furniture vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Jason Furniture |
| Nanxing Furniture |
Jason Furniture and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jason Furniture and Nanxing Furniture
The main advantage of trading using opposite Jason Furniture and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jason Furniture 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.| Jason Furniture vs. Shenzhen AV Display Co | Jason Furniture vs. Touchstone International Medical | Jason Furniture vs. Sportsoul Co Ltd | Jason Furniture vs. Winner Medical Co |
| Nanxing Furniture vs. Runjian Communication Co | Nanxing Furniture vs. Allwin Telecommunication Co | Nanxing Furniture vs. Fibocom Wireless | Nanxing Furniture vs. Jason Furniture |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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