Correlation Between Nutanix and Longfor Group
Can any of the company-specific risk be diversified away by investing in both Nutanix and Longfor Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nutanix and Longfor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutanix and Longfor Group Holdings, you can compare the effects of market volatilities on Nutanix and Longfor Group 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 Nutanix with a short position of Longfor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutanix and Longfor Group.
Diversification Opportunities for Nutanix and Longfor Group
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nutanix and Longfor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nutanix and Longfor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longfor Group Holdings and Nutanix 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 Nutanix are associated (or correlated) with Longfor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longfor Group Holdings has no effect on the direction of Nutanix i.e., Nutanix and Longfor Group go up and down completely randomly.
Pair Corralation between Nutanix and Longfor Group
If you would invest 6,251 in Nutanix on September 3, 2024 and sell it today you would earn a total of 277.00 from holding Nutanix or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nutanix vs. Longfor Group Holdings
Performance |
| Timeline |
| Nutanix |
| Longfor Group Holdings |
Nutanix and Longfor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutanix and Longfor Group
The main advantage of trading using opposite Nutanix and Longfor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutanix position performs unexpectedly, Longfor Group 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 Longfor Group will offset losses from the drop in Longfor Group's long position.| Nutanix vs. Palo Alto Networks | Nutanix vs. Uipath Inc | Nutanix vs. Zscaler | Nutanix vs. Crowdstrike Holdings |
| Longfor Group vs. China Overseas Land | Longfor Group vs. Sun Hung Kai | Longfor Group vs. Country Garden Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |