Correlation Between Rising Nonferrous and Jiangsu Zhongtian
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Rising Nonferrous and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jiangsu Zhongtian.
Diversification Opportunities for Rising Nonferrous and Jiangsu Zhongtian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jiangsu Zhongtian
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 2.15 times more return on investment than Jiangsu Zhongtian. However, Rising Nonferrous is 2.15 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.68 per unit of risk. If you would invest 2,952 in Rising Nonferrous Metals on October 14, 2024 and sell it today you would earn a total of 32.00 from holding Rising Nonferrous Metals or generate 1.08% 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. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jiangsu Zhongtian |
Rising Nonferrous and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jiangsu Zhongtian
The main advantage of trading using opposite Rising Nonferrous and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Rising Nonferrous vs. Shenzhen MYS Environmental | Rising Nonferrous vs. Hangzhou Guotai Environmental | Rising Nonferrous vs. Lingyuan Iron Steel | Rising Nonferrous vs. Penyao Environmental Protection |
| Jiangsu Zhongtian vs. Pengxin International Mining | Jiangsu Zhongtian vs. Jiugui Liquor Co | Jiangsu Zhongtian vs. Rising Nonferrous Metals | Jiangsu Zhongtian vs. Hubei Geoway Investment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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