Correlation Between Rising Nonferrous and State Grid
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By analyzing existing cross correlation between Rising Nonferrous Metals and State Grid InformationCommunication, you can compare the effects of market volatilities on Rising Nonferrous and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and State Grid.
Diversification Opportunities for Rising Nonferrous and State Grid
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and State is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and State Grid go up and down completely randomly.
Pair Corralation between Rising Nonferrous and State Grid
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.46 times more return on investment than State Grid. However, Rising Nonferrous is 1.46 times more volatile than State Grid InformationCommunication. It trades about 0.11 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.26 per unit of risk. If you would invest 2,894 in Rising Nonferrous Metals on October 18, 2024 and sell it today you would earn a total of 159.00 from holding Rising Nonferrous Metals or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. State Grid InformationCommunic
Performance |
| Timeline |
| Rising Nonferrous Metals |
| State Grid Informati |
Rising Nonferrous and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and State Grid
The main advantage of trading using opposite Rising Nonferrous and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Rising Nonferrous vs. Guotai Epoint Software | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. China National Software | Rising Nonferrous vs. Hongrun Construction Group |
| State Grid vs. Anhui Transport Consulting | State Grid vs. China Aluminum International | State Grid vs. Rising Nonferrous Metals | State Grid vs. Shanghai Yanpu Metal |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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