Correlation Between Rising Nonferrous and Shenzhen Clou
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Rising Nonferrous and Shenzhen Clou 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 Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shenzhen Clou.
Diversification Opportunities for Rising Nonferrous and Shenzhen Clou
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rising and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shenzhen Clou
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.91 times more return on investment than Shenzhen Clou. However, Rising Nonferrous Metals is 1.1 times less risky than Shenzhen Clou. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.03 per unit of risk. If you would invest 2,735 in Rising Nonferrous Metals on September 1, 2024 and sell it today you would earn a total of 257.00 from holding Rising Nonferrous Metals or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shenzhen Clou Electronics |
Rising Nonferrous and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shenzhen Clou
The main advantage of trading using opposite Rising Nonferrous and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shenzhen Clou 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 Clou will offset losses from the drop in Shenzhen Clou'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 |
| Shenzhen Clou vs. Maxvision Technology Corp | Shenzhen Clou vs. Huaxia Fund Management | Shenzhen Clou vs. Guangzhou KingTeller Technology | Shenzhen Clou vs. 360 Security Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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