Correlation Between Rising Nonferrous and Shandong Longda
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shandong Longda Meat, you can compare the effects of market volatilities on Rising Nonferrous and Shandong Longda 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 Shandong Longda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shandong Longda.
Diversification Opportunities for Rising Nonferrous and Shandong Longda
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Shandong is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shandong Longda Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longda Meat 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 Shandong Longda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longda Meat has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shandong Longda go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shandong Longda
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.44 times more return on investment than Shandong Longda. However, Rising Nonferrous is 1.44 times more volatile than Shandong Longda Meat. It trades about 0.12 of its potential returns per unit of risk. Shandong Longda Meat is currently generating about -0.49 per unit of risk. If you would invest 2,684 in Rising Nonferrous Metals on November 4, 2024 and sell it today you would earn a total of 154.00 from holding Rising Nonferrous Metals or generate 5.74% 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. Shandong Longda Meat
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shandong Longda Meat |
Rising Nonferrous and Shandong Longda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shandong Longda
The main advantage of trading using opposite Rising Nonferrous and Shandong Longda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shandong Longda 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 Shandong Longda will offset losses from the drop in Shandong Longda'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 |
| Shandong Longda vs. Sinofibers Technology Co | Shandong Longda vs. Anhui Tongguan Copper | Shandong Longda vs. HUAQIN TECHNOLOGY LTD | Shandong Longda vs. Zhengzhou Coal Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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