Correlation Between Rising Nonferrous and Lier Chemical
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By analyzing existing cross correlation between Rising Nonferrous Metals and Lier Chemical Co, you can compare the effects of market volatilities on Rising Nonferrous and Lier Chemical 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 Lier Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Lier Chemical.
Diversification Opportunities for Rising Nonferrous and Lier Chemical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Lier is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Lier Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lier Chemical 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 Lier Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lier Chemical has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Lier Chemical go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Lier Chemical
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.12 times more return on investment than Lier Chemical. However, Rising Nonferrous is 1.12 times more volatile than Lier Chemical Co. It trades about 0.06 of its potential returns per unit of risk. Lier Chemical Co is currently generating about 0.02 per unit of risk. If you would invest 2,708 in Rising Nonferrous Metals on September 5, 2024 and sell it today you would earn a total of 396.00 from holding Rising Nonferrous Metals or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Lier Chemical Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Lier Chemical |
Rising Nonferrous and Lier Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Lier Chemical
The main advantage of trading using opposite Rising Nonferrous and Lier Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Lier Chemical 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 Lier Chemical will offset losses from the drop in Lier Chemical'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 |
| Lier Chemical vs. Anhui Huilong Agricultural | Lier Chemical vs. Qijing Machinery | Lier Chemical vs. Rising Nonferrous Metals | Lier Chemical vs. Huasi Agricultural Development |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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