Correlation Between HUANLEJIA Food and Tongling Nonferrous
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By analyzing existing cross correlation between HUANLEJIA Food Group and Tongling Nonferrous Metals, you can compare the effects of market volatilities on HUANLEJIA Food 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 HUANLEJIA Food with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUANLEJIA Food and Tongling Nonferrous.
Diversification Opportunities for HUANLEJIA Food and Tongling Nonferrous
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HUANLEJIA and Tongling is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HUANLEJIA Food Group and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and HUANLEJIA Food 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 HUANLEJIA Food Group 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 HUANLEJIA Food i.e., HUANLEJIA Food and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between HUANLEJIA Food and Tongling Nonferrous
Assuming the 90 days trading horizon HUANLEJIA Food Group is expected to generate 4.75 times more return on investment than Tongling Nonferrous. However, HUANLEJIA Food is 4.75 times more volatile than Tongling Nonferrous Metals. It trades about 0.22 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.09 per unit of risk. If you would invest 1,370 in HUANLEJIA Food Group on September 14, 2024 and sell it today you would earn a total of 505.00 from holding HUANLEJIA Food Group or generate 36.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUANLEJIA Food Group vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| HUANLEJIA Food Group |
| Tongling Nonferrous |
HUANLEJIA Food and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUANLEJIA Food and Tongling Nonferrous
The main advantage of trading using opposite HUANLEJIA Food and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUANLEJIA Food 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.| HUANLEJIA Food vs. Shanghai Yanpu Metal | HUANLEJIA Food vs. Shanghai Shuixing Home | HUANLEJIA Food vs. Guocheng Mining Co | HUANLEJIA Food vs. Ye Chiu Metal |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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