Correlation Between Hangzhou Guotai and Rising Nonferrous
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Rising Nonferrous Metals, you can compare the effects of market volatilities on Hangzhou Guotai 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 Hangzhou Guotai with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Rising Nonferrous.
Diversification Opportunities for Hangzhou Guotai and Rising Nonferrous
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hangzhou and Rising is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental 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 Hangzhou Guotai 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 Hangzhou Guotai Environmental 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 Hangzhou Guotai i.e., Hangzhou Guotai and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Rising Nonferrous
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.97 times more return on investment than Rising Nonferrous. However, Hangzhou Guotai Environmental is 1.03 times less risky than Rising Nonferrous. It trades about 0.11 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.03 per unit of risk. If you would invest 3,097 in Hangzhou Guotai Environmental on October 14, 2024 and sell it today you would earn a total of 163.00 from holding Hangzhou Guotai Environmental or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Rising Nonferrous Metals |
Hangzhou Guotai and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Rising Nonferrous
The main advantage of trading using opposite Hangzhou Guotai and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai 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.| Hangzhou Guotai vs. Shenzhen MYS Environmental | Hangzhou Guotai vs. AVIC Fund Management | Hangzhou Guotai vs. Rongan Property Co | Hangzhou Guotai vs. Haoxiangni Jujube Co |
| Rising Nonferrous vs. Shenzhen MYS Environmental | Rising Nonferrous vs. Hangzhou Guotai Environmental | Rising Nonferrous vs. Lingyuan Iron Steel | Rising Nonferrous vs. Penyao Environmental Protection |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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