Correlation Between Nanxing Furniture and Xizi Clean
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By analyzing existing cross correlation between Nanxing Furniture Machinery and Xizi Clean Energy, you can compare the effects of market volatilities on Nanxing Furniture and Xizi Clean 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 Nanxing Furniture with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanxing Furniture and Xizi Clean.
Diversification Opportunities for Nanxing Furniture and Xizi Clean
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanxing and Xizi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nanxing Furniture Machinery and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Nanxing 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 Nanxing Furniture Machinery are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Nanxing Furniture i.e., Nanxing Furniture and Xizi Clean go up and down completely randomly.
Pair Corralation between Nanxing Furniture and Xizi Clean
Assuming the 90 days trading horizon Nanxing Furniture Machinery is expected to generate 1.41 times more return on investment than Xizi Clean. However, Nanxing Furniture is 1.41 times more volatile than Xizi Clean Energy. It trades about 0.16 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.14 per unit of risk. If you would invest 1,117 in Nanxing Furniture Machinery on September 6, 2024 and sell it today you would earn a total of 447.00 from holding Nanxing Furniture Machinery or generate 40.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nanxing Furniture Machinery vs. Xizi Clean Energy
Performance |
Timeline |
Nanxing Furniture |
Xizi Clean Energy |
Nanxing Furniture and Xizi Clean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanxing Furniture and Xizi Clean
The main advantage of trading using opposite Nanxing Furniture and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanxing Furniture position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.Nanxing Furniture vs. Ningbo Thermal Power | Nanxing Furniture vs. Shanghai Rendu Biotechnology | Nanxing Furniture vs. Shenyang Huitian Thermal | Nanxing Furniture vs. Tibet Huayu Mining |
Xizi Clean vs. Chengdu Kanghua Biological | Xizi Clean vs. Beijing Wantai Biological | Xizi Clean vs. Suzhou Novoprotein Scientific | Xizi Clean vs. Aluminum Corp of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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