Correlation Between Rising Nonferrous and Guangdong Brandmax
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Rising Nonferrous and Guangdong Brandmax 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 Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guangdong Brandmax.
Diversification Opportunities for Rising Nonferrous and Guangdong Brandmax
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rising and Guangdong is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guangdong Brandmax
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 13.16 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Rising Nonferrous Metals is 2.01 times less risky than Guangdong Brandmax. It trades about 0.01 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 729.00 in Guangdong Brandmax Marketing on December 2, 2024 and sell it today you would earn a total of 337.00 from holding Guangdong Brandmax Marketing or generate 46.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guangdong Brandmax |
Rising Nonferrous and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guangdong Brandmax
The main advantage of trading using opposite Rising Nonferrous and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Guangdong Brandmax 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 Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Rising Nonferrous vs. Guangzhou Jointas Chemical | Rising Nonferrous vs. Zhejiang Yongjin Metal | Rising Nonferrous vs. Shanghai Yanpu Metal | Rising Nonferrous vs. Dymatic Chemicals |
| Guangdong Brandmax vs. Soyea Technology Co | Guangdong Brandmax vs. Dongfeng Automobile Co | Guangdong Brandmax vs. Jiangsu Xinri E Vehicle | Guangdong Brandmax vs. Digiwin Software 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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