Correlation Between Guangzhou Jinyi and Rising Nonferrous
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Rising Nonferrous Metals, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Guangzhou Jinyi with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Rising Nonferrous.
Diversification Opportunities for Guangzhou Jinyi and Rising Nonferrous
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Rising is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media 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 Guangzhou Jinyi 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 Guangzhou Jinyi Media 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 Guangzhou Jinyi i.e., Guangzhou Jinyi and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Rising Nonferrous
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.23 times more return on investment than Rising Nonferrous. However, Guangzhou Jinyi is 1.23 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 -0.01 per unit of risk. If you would invest 793.00 in Guangzhou Jinyi Media on September 3, 2024 and sell it today you would lose (48.00) from holding Guangzhou Jinyi Media or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Rising Nonferrous Metals |
Guangzhou Jinyi and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Rising Nonferrous
The main advantage of trading using opposite Guangzhou Jinyi and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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.| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi vs. Loctek Ergonomic Technology |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co | Rising 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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