Correlation Between Rising Nonferrous and Guangzhou Haige
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangzhou Haige Communications, you can compare the effects of market volatilities on Rising Nonferrous and Guangzhou Haige 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 Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangzhou Haige.
Diversification Opportunities for Rising Nonferrous and Guangzhou Haige
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Guangzhou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangzhou Haige
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.89 times more return on investment than Guangzhou Haige. However, Rising Nonferrous Metals is 1.12 times less risky than Guangzhou Haige. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.03 per unit of risk. If you would invest 2,599 in Rising Nonferrous Metals on October 18, 2024 and sell it today you would earn a total of 454.00 from holding Rising Nonferrous Metals or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangzhou Haige Comm |
Rising Nonferrous and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangzhou Haige
The main advantage of trading using opposite Rising Nonferrous and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige'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 Haige vs. Shanghai Yanpu Metal | Guangzhou Haige vs. Rising Nonferrous Metals | Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. Jinlong Machinery Electronic |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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