Correlation Between Rising Nonferrous and Sublime China
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By analyzing existing cross correlation between Rising Nonferrous Metals and Sublime China Information, you can compare the effects of market volatilities on Rising Nonferrous and Sublime China 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 Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Sublime China.
Diversification Opportunities for Rising Nonferrous and Sublime China
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Sublime is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China Information 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 Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Sublime China go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Sublime China
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 11.45 times less return on investment than Sublime China. But when comparing it to its historical volatility, Rising Nonferrous Metals is 1.8 times less risky than Sublime China. It trades about 0.03 of its potential returns per unit of risk. Sublime China Information is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,551 in Sublime China Information on October 25, 2024 and sell it today you would earn a total of 1,057 from holding Sublime China Information or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Sublime China Information
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Sublime China Information |
Rising Nonferrous and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Sublime China
The main advantage of trading using opposite Rising Nonferrous and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Sublime China 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 Sublime China will offset losses from the drop in Sublime China's long position.| Rising Nonferrous vs. Humanwell Healthcare Group | Rising Nonferrous vs. Sanbo Hospital Management | Rising Nonferrous vs. Shanghai CEO Environmental | Rising Nonferrous vs. Everjoy Health Group |
| Sublime China vs. Bosera CMSK Industrial | Sublime China vs. Guocheng Mining Co | Sublime China vs. Rising Nonferrous Metals | Sublime China vs. Qingdao Choho Industrial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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