Correlation Between Hangzhou EZVIZ and Nanxing Furniture
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By analyzing existing cross correlation between Hangzhou EZVIZ Network and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Hangzhou EZVIZ 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 Hangzhou EZVIZ with a short position of Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou EZVIZ and Nanxing Furniture.
Diversification Opportunities for Hangzhou EZVIZ and Nanxing Furniture
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Nanxing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou EZVIZ Network and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture and Hangzhou EZVIZ 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 Hangzhou EZVIZ Network 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 Hangzhou EZVIZ i.e., Hangzhou EZVIZ and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Hangzhou EZVIZ and Nanxing Furniture
Assuming the 90 days trading horizon Hangzhou EZVIZ Network is expected to generate 0.6 times more return on investment than Nanxing Furniture. However, Hangzhou EZVIZ Network is 1.65 times less risky than Nanxing Furniture. It trades about -0.01 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about -0.02 per unit of risk. If you would invest 3,072 in Hangzhou EZVIZ Network on September 26, 2024 and sell it today you would lose (31.00) from holding Hangzhou EZVIZ Network or give up 1.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hangzhou EZVIZ Network vs. Nanxing Furniture Machinery
Performance |
Timeline |
Hangzhou EZVIZ Network |
Nanxing Furniture |
Hangzhou EZVIZ and Nanxing Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou EZVIZ and Nanxing Furniture
The main advantage of trading using opposite Hangzhou EZVIZ and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou EZVIZ 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.Hangzhou EZVIZ vs. Nanxing Furniture Machinery | Hangzhou EZVIZ vs. Guangzhou Automobile Group | Hangzhou EZVIZ vs. Senci Electric Machinery | Hangzhou EZVIZ vs. Lutian Machinery Co |
Nanxing Furniture vs. Bank of China | Nanxing Furniture vs. Kweichow Moutai Co | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Bank of Communications |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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