Correlation Between Rising Nonferrous and Emdoor Information
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By analyzing existing cross correlation between Rising Nonferrous Metals and Emdoor Information Co, you can compare the effects of market volatilities on Rising Nonferrous and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Emdoor Information.
Diversification Opportunities for Rising Nonferrous and Emdoor Information
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Emdoor is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Emdoor Information go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Emdoor Information
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.48 times more return on investment than Emdoor Information. However, Rising Nonferrous Metals is 2.07 times less risky than Emdoor Information. It trades about 0.11 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.01 per unit of risk. If you would invest 2,894 in Rising Nonferrous Metals on October 18, 2024 and sell it today you would earn a total of 159.00 from holding Rising Nonferrous Metals or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Emdoor Information Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Emdoor Information |
Rising Nonferrous and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Emdoor Information
The main advantage of trading using opposite Rising Nonferrous and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information'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 |
| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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