Correlation Between Rising Nonferrous and Guangdong Jinma
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Rising Nonferrous and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangdong Jinma.
Diversification Opportunities for Rising Nonferrous and Guangdong Jinma
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangdong Jinma
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Guangdong Jinma. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.48 times less risky than Guangdong Jinma. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,227 in Guangdong Jinma Entertainment on September 3, 2024 and sell it today you would earn a total of 434.00 from holding Guangdong Jinma Entertainment or generate 35.37% 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. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangdong Jinma Ente |
Rising Nonferrous and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangdong Jinma
The main advantage of trading using opposite Rising Nonferrous and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co | Rising Nonferrous vs. Hoshine Silicon Ind |
| Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. Industrial and Commercial | Guangdong Jinma vs. China Life Insurance |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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