Correlation Between China Nonferrous and Yantai Changyu
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By analyzing existing cross correlation between China Nonferrous Metal and Yantai Changyu Pioneer, you can compare the effects of market volatilities on China Nonferrous and Yantai Changyu 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 China Nonferrous with a short position of Yantai Changyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Nonferrous and Yantai Changyu.
Diversification Opportunities for China Nonferrous and Yantai Changyu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Yantai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Nonferrous Metal and Yantai Changyu Pioneer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai Changyu Pioneer and China 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 China Nonferrous Metal are associated (or correlated) with Yantai Changyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai Changyu Pioneer has no effect on the direction of China Nonferrous i.e., China Nonferrous and Yantai Changyu go up and down completely randomly.
Pair Corralation between China Nonferrous and Yantai Changyu
Assuming the 90 days trading horizon China Nonferrous Metal is expected to under-perform the Yantai Changyu. But the stock apears to be less risky and, when comparing its historical volatility, China Nonferrous Metal is 1.02 times less risky than Yantai Changyu. The stock trades about 0.0 of its potential returns per unit of risk. The Yantai Changyu Pioneer is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,325 in Yantai Changyu Pioneer on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Yantai Changyu Pioneer or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Nonferrous Metal vs. Yantai Changyu Pioneer
Performance |
| Timeline |
| China Nonferrous Metal |
| Yantai Changyu Pioneer |
China Nonferrous and Yantai Changyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Nonferrous and Yantai Changyu
The main advantage of trading using opposite China Nonferrous and Yantai Changyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Nonferrous position performs unexpectedly, Yantai Changyu 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 Yantai Changyu will offset losses from the drop in Yantai Changyu's long position.| China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold Mining |
| Yantai Changyu vs. Industrial and Commercial | Yantai Changyu vs. Agricultural Bank of | Yantai Changyu vs. China Construction Bank | Yantai Changyu vs. Bank of China |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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