Correlation Between Rising Nonferrous and Guangzhou Dongfang
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Rising Nonferrous and Guangzhou Dongfang 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 Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangzhou Dongfang.
Diversification Opportunities for Rising Nonferrous and Guangzhou Dongfang
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Rising and Guangzhou is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel 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 Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangzhou Dongfang
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.88 times more return on investment than Guangzhou Dongfang. However, Rising Nonferrous Metals is 1.14 times less risky than Guangzhou Dongfang. It trades about -0.05 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.07 per unit of risk. If you would invest 2,992 in Rising Nonferrous Metals on October 30, 2024 and sell it today you would lose (154.00) from holding Rising Nonferrous Metals or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangzhou Dongfang Hotel |
Rising Nonferrous and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangzhou Dongfang
The main advantage of trading using opposite Rising Nonferrous and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| Guangzhou Dongfang vs. Shanghai Phichem Material | Guangzhou Dongfang vs. Guocheng Mining Co | Guangzhou Dongfang vs. Chongqing Sulian Plastic | Guangzhou Dongfang vs. Bosera CMSK Industrial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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