Correlation Between Rising Nonferrous and Chengtun Mining
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By analyzing existing cross correlation between Rising Nonferrous Metals and Chengtun Mining Group, you can compare the effects of market volatilities on Rising Nonferrous and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Chengtun Mining.
Diversification Opportunities for Rising Nonferrous and Chengtun Mining
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Chengtun is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Chengtun Mining go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Chengtun Mining
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.11 times less risky than Chengtun Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 635.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (147.00) from holding Chengtun Mining Group or give up 23.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Chengtun Mining Group
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Chengtun Mining Group |
Rising Nonferrous and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Chengtun Mining
The main advantage of trading using opposite Rising Nonferrous and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Rising Nonferrous vs. Zoy Home Furnishing | Rising Nonferrous vs. Mengtian Home Group | Rising Nonferrous vs. Xiamen Goldenhome Co | Rising Nonferrous vs. Huatian Hotel Group |
| Chengtun Mining vs. Chongqing Changan Automobile | Chengtun Mining vs. Iat Automobile Technology | Chengtun Mining vs. Shenzhen Zhongzhuang Construction | Chengtun Mining vs. Hongrun Construction Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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