Correlation Between Rising Nonferrous and Shenzhen Agricultural
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Rising Nonferrous and Shenzhen Agricultural 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 Rising Nonferrous with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shenzhen Agricultural.
Diversification Opportunities for Rising Nonferrous and Shenzhen Agricultural
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rising and Shenzhen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Rising Nonferrous 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 Rising Nonferrous Metals are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shenzhen Agricultural
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.35 times more return on investment than Shenzhen Agricultural. However, Rising Nonferrous is 1.35 times more volatile than Shenzhen Agricultural Products. It trades about 0.12 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.13 per unit of risk. If you would invest 2,335 in Rising Nonferrous Metals on October 18, 2024 and sell it today you would earn a total of 718.00 from holding Rising Nonferrous Metals or generate 30.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shenzhen Agricultural |
Rising Nonferrous and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shenzhen Agricultural
The main advantage of trading using opposite Rising Nonferrous and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Rising Nonferrous vs. Guotai Epoint Software | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. China National Software | Rising Nonferrous vs. Hongrun Construction Group |
| Shenzhen Agricultural vs. Western Metal Materials | Shenzhen Agricultural vs. Fibocom Wireless | Shenzhen Agricultural vs. Rising Nonferrous Metals | Shenzhen Agricultural vs. Haima Automobile Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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