Correlation Between Gansu Huangtai and Tongling Nonferrous
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Tongling Nonferrous.
Diversification Opportunities for Gansu Huangtai and Tongling Nonferrous
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Tongling is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Tongling Nonferrous
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 3.74 times more return on investment than Tongling Nonferrous. However, Gansu Huangtai is 3.74 times more volatile than Tongling Nonferrous Metals. It trades about 0.05 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.04 per unit of risk. If you would invest 1,537 in Gansu Huangtai Wine marketing on October 28, 2024 and sell it today you would earn a total of 37.00 from holding Gansu Huangtai Wine marketing or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Tongling Nonferrous |
Gansu Huangtai and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Tongling Nonferrous
The main advantage of trading using opposite Gansu Huangtai and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Cicc Fund Management | Gansu Huangtai vs. SSAW Hotels Resorts | Gansu Huangtai vs. Jiangsu Financial Leasing | Gansu Huangtai vs. Postal Savings Bank |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Shandong Gold Mining |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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