Correlation Between Rising Nonferrous and Jinlong Machinery
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Rising Nonferrous and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jinlong Machinery.
Diversification Opportunities for Rising Nonferrous and Jinlong Machinery
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Jinlong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jinlong Machinery
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.7 times more return on investment than Jinlong Machinery. However, Rising Nonferrous Metals is 1.43 times less risky than Jinlong Machinery. It trades about -0.05 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.17 per unit of risk. If you would invest 2,992 in Rising Nonferrous Metals on October 30, 2024 and sell it today you would lose (154.00) from holding Rising Nonferrous Metals or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jinlong Machinery |
Rising Nonferrous and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jinlong Machinery
The main advantage of trading using opposite Rising Nonferrous and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery'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 |
| Jinlong Machinery vs. Jiangsu Yanghe Brewery | Jinlong Machinery vs. Chison Medical Technologies | Jinlong Machinery vs. Tinavi Medical Technologies | Jinlong Machinery vs. Zhongzhu Medical Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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