Correlation Between Rising Nonferrous and Jiangxi Naipu
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Rising Nonferrous and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jiangxi Naipu.
Diversification Opportunities for Rising Nonferrous and Jiangxi Naipu
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rising and Jiangxi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jiangxi Naipu
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Jiangxi Naipu. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.24 times less risky than Jiangxi Naipu. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangxi Naipu Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,526 in Jiangxi Naipu Mining on October 12, 2024 and sell it today you would earn a total of 1,130 from holding Jiangxi Naipu Mining or generate 74.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jiangxi Naipu Mining |
Rising Nonferrous and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jiangxi Naipu
The main advantage of trading using opposite Rising Nonferrous and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| Rising Nonferrous vs. Zoy Home Furnishing | Rising Nonferrous vs. Mengtian Home Group | Rising Nonferrous vs. Xiamen Goldenhome Co | Rising Nonferrous vs. Huatian Hotel Group |
| Jiangxi Naipu vs. Gansu Huangtai Wine marketing | Jiangxi Naipu vs. Dawning Information Industry | Jiangxi Naipu vs. Fiberhome Telecommunication Technologies | Jiangxi Naipu vs. Beijing Kingsoft Office |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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