Correlation Between Shenzhen Silver and Rising Nonferrous
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By analyzing existing cross correlation between Shenzhen Silver Basis and Rising Nonferrous Metals, you can compare the effects of market volatilities on Shenzhen Silver 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 Shenzhen Silver with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Rising Nonferrous.
Diversification Opportunities for Shenzhen Silver and Rising Nonferrous
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Rising is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis 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 Shenzhen Silver 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 Shenzhen Silver Basis 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 Shenzhen Silver i.e., Shenzhen Silver and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Rising Nonferrous
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to generate 1.82 times more return on investment than Rising Nonferrous. However, Shenzhen Silver is 1.82 times more volatile than Rising Nonferrous Metals. It trades about 0.0 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 1,214 in Shenzhen Silver Basis on October 21, 2024 and sell it today you would lose (277.00) from holding Shenzhen Silver Basis or give up 22.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Silver Basis vs. Rising Nonferrous Metals
Performance |
Timeline |
Shenzhen Silver Basis |
Rising Nonferrous Metals |
Shenzhen Silver and Rising Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Silver and Rising Nonferrous
The main advantage of trading using opposite Shenzhen Silver and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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.Shenzhen Silver vs. Nuode Investment Co | Shenzhen Silver vs. China Asset Management | Shenzhen Silver vs. Jinsanjiang Silicon Material | Shenzhen Silver vs. Shanghai Material Trading |
Rising Nonferrous vs. JCHX Mining Management | Rising Nonferrous vs. Shenzhen Silver Basis | Rising Nonferrous vs. Fujian Newland Computer | Rising Nonferrous vs. Jinhui Mining 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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