Correlation Between Rising Nonferrous and Suzhou Industrial
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By analyzing existing cross correlation between Rising Nonferrous Metals and Suzhou Industrial Park, you can compare the effects of market volatilities on Rising Nonferrous and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Suzhou Industrial.
Diversification Opportunities for Rising Nonferrous and Suzhou Industrial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Suzhou is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Suzhou Industrial
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.38 times more return on investment than Suzhou Industrial. However, Rising Nonferrous Metals is 2.65 times less risky than Suzhou Industrial. It trades about 0.06 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about 0.01 per unit of risk. If you would invest 2,907 in Rising Nonferrous Metals on October 15, 2024 and sell it today you would earn a total of 77.00 from holding Rising Nonferrous Metals or generate 2.65% 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. Suzhou Industrial Park
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Suzhou Industrial Park |
Rising Nonferrous and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Suzhou Industrial
The main advantage of trading using opposite Rising Nonferrous and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Rising Nonferrous vs. Heilongjiang Publishing Media | Rising Nonferrous vs. Thinkingdom Media Group | Rising Nonferrous vs. JiShi Media Co | Rising Nonferrous vs. Chongqing Shunbo Aluminum |
| Suzhou Industrial vs. Jiangsu Xinri E Vehicle | Suzhou Industrial vs. Jiangsu Jinling Sports | Suzhou Industrial vs. Songz Automobile Air | Suzhou Industrial vs. Shuhua Sports Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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