Correlation Between Dazhong Transportation and Nanxing Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dazhong Transportation Group and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Nanxing Furniture.
Diversification Opportunities for Dazhong Transportation and Nanxing Furniture
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dazhong and Nanxing is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Nanxing Furniture
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 2.61 times less return on investment than Nanxing Furniture. But when comparing it to its historical volatility, Dazhong Transportation Group is 1.07 times less risky than Nanxing Furniture. It trades about 0.03 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,025 in Nanxing Furniture Machinery on November 3, 2024 and sell it today you would earn a total of 724.00 from holding Nanxing Furniture Machinery or generate 70.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Nanxing Furniture Machinery
Performance |
| Timeline |
| Dazhong Transportation |
| Nanxing Furniture |
Dazhong Transportation and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Nanxing Furniture
The main advantage of trading using opposite Dazhong Transportation and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Anji Foodstuff Co | Dazhong Transportation vs. Citic Guoan Wine | Dazhong Transportation vs. Tonghua Grape Wine | Dazhong Transportation vs. JuneYao Dairy Co |
| Nanxing Furniture vs. Aba Chemicals Corp | Nanxing Furniture vs. Shandong Polymer Biochemicals | Nanxing Furniture vs. APT Medical | Nanxing Furniture vs. Guangdong Transtek Medical |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |