Correlation Between Guangdong Jinma and Rising Nonferrous
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Rising Nonferrous Metals, you can compare the effects of market volatilities on Guangdong Jinma 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 Guangdong Jinma with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Rising Nonferrous.
Diversification Opportunities for Guangdong Jinma and Rising Nonferrous
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Rising is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment 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 Guangdong Jinma 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 Guangdong Jinma Entertainment 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 Guangdong Jinma i.e., Guangdong Jinma and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Rising Nonferrous
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.48 times more return on investment than Rising Nonferrous. However, Guangdong Jinma is 1.48 times more volatile than Rising Nonferrous Metals. It trades about 0.07 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 1,227 in Guangdong Jinma Entertainment on September 3, 2024 and sell it today you would earn a total of 434.00 from holding Guangdong Jinma Entertainment or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Rising Nonferrous Metals |
Guangdong Jinma and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Rising Nonferrous
The main advantage of trading using opposite Guangdong Jinma and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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.| Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. Industrial and Commercial | Guangdong Jinma vs. China Life Insurance |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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