Correlation Between Asymchem Laboratories and Tongling Nonferrous
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By analyzing existing cross correlation between Asymchem Laboratories Tian and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Asymchem Laboratories 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 Asymchem Laboratories with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asymchem Laboratories and Tongling Nonferrous.
Diversification Opportunities for Asymchem Laboratories and Tongling Nonferrous
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asymchem and Tongling is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Asymchem Laboratories Tian and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Asymchem Laboratories 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 Asymchem Laboratories Tian 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 Asymchem Laboratories i.e., Asymchem Laboratories and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Asymchem Laboratories and Tongling Nonferrous
Assuming the 90 days trading horizon Asymchem Laboratories Tian is expected to generate 1.27 times more return on investment than Tongling Nonferrous. However, Asymchem Laboratories is 1.27 times more volatile than Tongling Nonferrous Metals. It trades about 0.02 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.05 per unit of risk. If you would invest 8,269 in Asymchem Laboratories Tian on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Asymchem Laboratories Tian or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asymchem Laboratories Tian vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Asymchem Laboratories |
| Tongling Nonferrous |
Asymchem Laboratories and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asymchem Laboratories and Tongling Nonferrous
The main advantage of trading using opposite Asymchem Laboratories and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asymchem Laboratories 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.| Asymchem Laboratories vs. Chenzhou Jingui Silver | Asymchem Laboratories vs. Holitech Technology Co | Asymchem Laboratories vs. Zhengzhou Coal Mining | Asymchem Laboratories vs. Zijin Mining Group |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Rongsheng Petrochemical Co | Tongling Nonferrous vs. Hoshine Silicon Ind |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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