Correlation Between Kuang Chi and Tongling Nonferrous
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By analyzing existing cross correlation between Kuang Chi Technologies and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Tongling Nonferrous.
Diversification Opportunities for Kuang Chi and Tongling Nonferrous
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Tongling is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Kuang Chi and Tongling Nonferrous
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Tongling Nonferrous. In addition to that, Kuang Chi is 2.92 times more volatile than Tongling Nonferrous Metals. It trades about -0.19 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.04 per unit of volatility. If you would invest 331.00 in Tongling Nonferrous Metals on October 28, 2024 and sell it today you would lose (4.00) from holding Tongling Nonferrous Metals or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Kuang Chi Technologies |
| Tongling Nonferrous |
Kuang Chi and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Tongling Nonferrous
The main advantage of trading using opposite Kuang Chi and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Jiangsu Pacific Quartz | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. Luzhou Lao Jiao |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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