Correlation Between Rising Nonferrous and Guangzhou Tinci
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Rising Nonferrous and Guangzhou Tinci 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 Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangzhou Tinci.
Diversification Opportunities for Rising Nonferrous and Guangzhou Tinci
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Guangzhou is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangzhou Tinci
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 1.05 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Rising Nonferrous Metals is 1.44 times less risky than Guangzhou Tinci. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,611 in Guangzhou Tinci Materials on October 18, 2024 and sell it today you would earn a total of 220.00 from holding Guangzhou Tinci Materials or generate 13.66% 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 Tinci Materials
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangzhou Tinci Materials |
Rising Nonferrous and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangzhou Tinci
The main advantage of trading using opposite Rising Nonferrous and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangzhou Tinci 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 Tinci will offset losses from the drop in Guangzhou Tinci'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 Tinci vs. Rising Nonferrous Metals | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Anhui Transport Consulting | Guangzhou Tinci vs. Xinjiang Beixin RoadBridge |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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