Correlation Between Rising Nonferrous and Shengtak New
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shengtak New Material, you can compare the effects of market volatilities on Rising Nonferrous and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shengtak New.
Diversification Opportunities for Rising Nonferrous and Shengtak New
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Shengtak is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shengtak New go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shengtak New
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.59 times more return on investment than Shengtak New. However, Rising Nonferrous is 1.59 times more volatile than Shengtak New Material. It trades about 0.12 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.23 per unit of risk. If you would invest 2,907 in Rising Nonferrous Metals on October 16, 2024 and sell it today you would earn a total of 173.00 from holding Rising Nonferrous Metals or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shengtak New Material
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shengtak New Material |
Rising Nonferrous and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shengtak New
The main advantage of trading using opposite Rising Nonferrous and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Rising Nonferrous vs. Heilongjiang Publishing Media | Rising Nonferrous vs. Xinhua Winshare Publishing | Rising Nonferrous vs. Shandong Publishing Media | Rising Nonferrous vs. Qtone Education Group |
| Shengtak New vs. Union Semiconductor Co | Shengtak New vs. Fiberhome Telecommunication Technologies | Shengtak New vs. Haima Automobile Group | Shengtak New vs. Shannon Semiconductor Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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