Correlation Between Rising Nonferrous and Guangzhou Haozhi
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Rising Nonferrous and Guangzhou Haozhi 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 Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangzhou Haozhi.
Diversification Opportunities for Rising Nonferrous and Guangzhou Haozhi
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rising and Guangzhou is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangzhou Haozhi
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 4.02 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Rising Nonferrous Metals is 1.67 times less risky than Guangzhou Haozhi. It trades about 0.24 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 2,189 in Guangzhou Haozhi Industrial on November 27, 2024 and sell it today you would earn a total of 811.00 from holding Guangzhou Haozhi Industrial or generate 37.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangzhou Haozhi Ind |
Rising Nonferrous and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangzhou Haozhi
The main advantage of trading using opposite Rising Nonferrous and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangzhou Haozhi 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 Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Rising Nonferrous vs. Simei Media Co | Rising Nonferrous vs. Guangdong Jingyi Metal | Rising Nonferrous vs. Thinkingdom Media Group | Rising Nonferrous vs. Chongqing Shunbo Aluminum |
| Guangzhou Haozhi vs. Rongcheer Industrial Technology | Guangzhou Haozhi vs. Jiangsu Jinling Sports | Guangzhou Haozhi vs. Caihong Display Devices | Guangzhou Haozhi vs. Sportsoul Co Ltd |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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