Correlation Between Hunan Mendale and Rising Nonferrous
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Rising Nonferrous Metals, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Rising Nonferrous.
Diversification Opportunities for Hunan Mendale and Rising Nonferrous
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Rising is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile 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 Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Hunan Mendale and Rising Nonferrous
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 2.56 times more return on investment than Rising Nonferrous. However, Hunan Mendale is 2.56 times more volatile than Rising Nonferrous Metals. It trades about 0.06 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.08 per unit of risk. If you would invest 290.00 in Hunan Mendale Hometextile on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Hunan Mendale Hometextile or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Rising Nonferrous Metals |
Hunan Mendale and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Rising Nonferrous
The main advantage of trading using opposite Hunan Mendale and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Ningxia Building Materials | Hunan Mendale vs. China Aluminum International | Hunan Mendale vs. Cangzhou Mingzhu Plastic | Hunan Mendale vs. Chongqing Shunbo Aluminum |
| Rising Nonferrous vs. Hangzhou Gisway Information | Rising Nonferrous vs. Zhongfu Information | Rising Nonferrous vs. Digital China Information | Rising Nonferrous vs. Bangyan Technology Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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