Correlation Between Tongding Interconnection and Rising Nonferrous
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By analyzing existing cross correlation between Tongding Interconnection Information and Rising Nonferrous Metals, you can compare the effects of market volatilities on Tongding Interconnection 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 Tongding Interconnection with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Rising Nonferrous.
Diversification Opportunities for Tongding Interconnection and Rising Nonferrous
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tongding and Rising is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor 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 Tongding Interconnection 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 Tongding Interconnection Information 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 Tongding Interconnection i.e., Tongding Interconnection and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Rising Nonferrous
Assuming the 90 days trading horizon Tongding Interconnection is expected to generate 8.51 times less return on investment than Rising Nonferrous. In addition to that, Tongding Interconnection is 1.74 times more volatile than Rising Nonferrous Metals. It trades about 0.01 of its total potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.1 per unit of volatility. If you would invest 2,709 in Rising Nonferrous Metals on November 3, 2024 and sell it today you would earn a total of 129.00 from holding Rising Nonferrous Metals or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Tongding Interconnection |
| Rising Nonferrous Metals |
Tongding Interconnection and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Rising Nonferrous
The main advantage of trading using opposite Tongding Interconnection and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection 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.| Tongding Interconnection vs. Shanghai Ziyan Foods | Tongding Interconnection vs. Anji Foodstuff Co | Tongding Interconnection vs. New Hope Dairy | Tongding Interconnection vs. Jiahe Foods Industry |
| Rising Nonferrous vs. Kailong High Technology | Rising Nonferrous vs. XiaMen HongXin Electron tech | Rising Nonferrous vs. Eyebright Medical Technology | Rising Nonferrous vs. Sichuan Hebang Biotechnology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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