Correlation Between Rising Nonferrous and CIMC Vehicles
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By analyzing existing cross correlation between Rising Nonferrous Metals and CIMC Vehicles Co, you can compare the effects of market volatilities on Rising Nonferrous and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and CIMC Vehicles.
Diversification Opportunities for Rising Nonferrous and CIMC Vehicles
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rising and CIMC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Rising Nonferrous and CIMC Vehicles
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the CIMC Vehicles. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.08 times less risky than CIMC Vehicles. The stock trades about -0.01 of its potential returns per unit of risk. The CIMC Vehicles Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 933.00 in CIMC Vehicles Co on September 3, 2024 and sell it today you would earn a total of 53.00 from holding CIMC Vehicles Co or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. CIMC Vehicles Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| CIMC Vehicles |
Rising Nonferrous and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and CIMC Vehicles
The main advantage of trading using opposite Rising Nonferrous and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
| CIMC Vehicles vs. Bangyan Technology Co | CIMC Vehicles vs. Uroica Mining Safety | CIMC Vehicles vs. Shengda Mining Co | CIMC Vehicles vs. Shenyang Huitian Thermal |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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