Correlation Between Oriental Times and Rising Nonferrous
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By analyzing existing cross correlation between Oriental Times Media and Rising Nonferrous Metals, you can compare the effects of market volatilities on Oriental Times and Rising 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 Oriental Times with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Rising Nonferrous.
Diversification Opportunities for Oriental Times and Rising Nonferrous
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oriental and Rising is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals and Oriental Times 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 Oriental Times Media are associated (or correlated) with Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Oriental Times i.e., Oriental Times and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Oriental Times and Rising Nonferrous
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.83 times more return on investment than Rising Nonferrous. However, Oriental Times is 1.83 times more volatile than Rising Nonferrous Metals. It trades about 0.39 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.0 per unit of risk. If you would invest 281.00 in Oriental Times Media on September 1, 2024 and sell it today you would earn a total of 171.00 from holding Oriental Times Media or generate 60.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Oriental Times Media |
| Rising Nonferrous Metals |
Oriental Times and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Rising Nonferrous
The main advantage of trading using opposite Oriental Times and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Rising 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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