Correlation Between Shenzhen Centralcon and Tongling Nonferrous
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Shenzhen Centralcon and Tongling Nonferrous 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 Shenzhen Centralcon with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Tongling Nonferrous.
Diversification Opportunities for Shenzhen Centralcon and Tongling Nonferrous
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Tongling is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Tongling Nonferrous
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Tongling Nonferrous. In addition to that, Shenzhen Centralcon is 2.38 times more volatile than Tongling Nonferrous Metals. It trades about -0.54 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.39 per unit of volatility. If you would invest 358.00 in Tongling Nonferrous Metals on October 13, 2024 and sell it today you would lose (36.00) from holding Tongling Nonferrous Metals or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Shenzhen Centralcon |
| Tongling Nonferrous |
Shenzhen Centralcon and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Tongling Nonferrous
The main advantage of trading using opposite Shenzhen Centralcon and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Shenzhen Centralcon vs. Guotai Epoint Software | Shenzhen Centralcon vs. Olympic Circuit Technology | Shenzhen Centralcon vs. Soyea Technology Co | Shenzhen Centralcon vs. Linewell Software Co |
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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