Correlation Between Tongling Nonferrous and Bright Real
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Bright Real Estate, you can compare the effects of market volatilities on Tongling Nonferrous and Bright Real 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 Bright Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Bright Real.
Diversification Opportunities for Tongling Nonferrous and Bright Real
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongling and Bright is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Bright Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Real Estate 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 Bright Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Real Estate has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Bright Real go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Bright Real
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to under-perform the Bright Real. But the stock apears to be less risky and, when comparing its historical volatility, Tongling Nonferrous Metals is 3.1 times less risky than Bright Real. The stock trades about -0.03 of its potential returns per unit of risk. The Bright Real Estate is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 310.00 in Bright Real Estate on September 12, 2024 and sell it today you would earn a total of 122.00 from holding Bright Real Estate or generate 39.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Bright Real Estate
Performance |
| Timeline |
| Tongling Nonferrous |
| Bright Real Estate |
Tongling Nonferrous and Bright Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Bright Real
The main advantage of trading using opposite Tongling Nonferrous and Bright Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Bright Real 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 Bright Real will offset losses from the drop in Bright Real'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 |
| Bright Real vs. ZYF Lopsking Aluminum | Bright Real vs. Shuhua Sports Co | Bright Real vs. Tongling Nonferrous Metals | Bright Real vs. Sportsoul Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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