Correlation Between Rising Nonferrous and Chongqing Shunbo
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By analyzing existing cross correlation between Rising Nonferrous Metals and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Rising Nonferrous and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Chongqing Shunbo.
Diversification Opportunities for Rising Nonferrous and Chongqing Shunbo
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Chongqing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Chongqing Shunbo
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.96 times more return on investment than Chongqing Shunbo. However, Rising Nonferrous Metals is 1.04 times less risky than Chongqing Shunbo. It trades about 0.04 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about 0.02 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Chongqing Shunbo Aluminum |
Rising Nonferrous and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Chongqing Shunbo
The main advantage of trading using opposite Rising Nonferrous and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo'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 |
| Chongqing Shunbo vs. Shanghai Jinfeng Wine | Chongqing Shunbo vs. Hubei Forbon Technology | Chongqing Shunbo vs. Guangzhou KingTeller Technology | Chongqing Shunbo vs. ROPEOK Technology Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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