Correlation Between Tongling Nonferrous and Wuhan Hvsen
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Tongling Nonferrous and Wuhan Hvsen 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 Tongling Nonferrous with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Wuhan Hvsen.
Diversification Opportunities for Tongling Nonferrous and Wuhan Hvsen
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongling and Wuhan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology and Tongling Nonferrous 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 Tongling Nonferrous Metals are associated (or correlated) with Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Wuhan Hvsen
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.69 times more return on investment than Wuhan Hvsen. However, Tongling Nonferrous Metals is 1.45 times less risky than Wuhan Hvsen. It trades about 0.03 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.01 per unit of risk. If you would invest 306.00 in Tongling Nonferrous Metals on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Tongling Nonferrous Metals or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Tongling Nonferrous |
| Wuhan Hvsen Biotechnology |
Tongling Nonferrous and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Wuhan Hvsen
The main advantage of trading using opposite Tongling Nonferrous and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Tongling Nonferrous vs. Zhengzhou Coal Mining | Tongling Nonferrous vs. JCHX Mining Management | Tongling Nonferrous vs. Xinjiang Baodi Mining | Tongling Nonferrous vs. Sanbo Hospital Management |
| Wuhan Hvsen vs. Cultural Investment Holdings | Wuhan Hvsen vs. Gome Telecom Equipment | Wuhan Hvsen vs. Holitech Technology Co | Wuhan Hvsen vs. Zotye Automobile 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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