Correlation Between Tongling Nonferrous and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Tongling Nonferrous and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Zhangjiagang Freetrade.
Diversification Opportunities for Tongling Nonferrous and Zhangjiagang Freetrade
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongling and Zhangjiagang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.97 times more return on investment than Zhangjiagang Freetrade. However, Tongling Nonferrous Metals is 1.03 times less risky than Zhangjiagang Freetrade. It trades about 0.03 of its potential returns per unit of risk. Zhangjiagang Freetrade Science 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. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Tongling Nonferrous |
| Zhangjiagang Freetrade |
Tongling Nonferrous and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Zhangjiagang Freetrade
The main advantage of trading using opposite Tongling Nonferrous and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade'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 |
| Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Bank of China | Zhangjiagang Freetrade vs. PetroChina 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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