Correlation Between Rising Nonferrous and Dalian Thermal
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By analyzing existing cross correlation between Rising Nonferrous Metals and Dalian Thermal Power, you can compare the effects of market volatilities on Rising Nonferrous and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Dalian Thermal.
Diversification Opportunities for Rising Nonferrous and Dalian Thermal
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Dalian is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Dalian Thermal go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Dalian Thermal
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.63 times more return on investment than Dalian Thermal. However, Rising Nonferrous Metals is 1.59 times less risky than Dalian Thermal. It trades about 0.05 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.01 per unit of risk. If you would invest 2,518 in Rising Nonferrous Metals on November 3, 2024 and sell it today you would earn a total of 320.00 from holding Rising Nonferrous Metals or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Dalian Thermal Power
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Dalian Thermal Power |
Rising Nonferrous and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Dalian Thermal
The main advantage of trading using opposite Rising Nonferrous and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Rising Nonferrous vs. Kailong High Technology | Rising Nonferrous vs. XiaMen HongXin Electron tech | Rising Nonferrous vs. Eyebright Medical Technology | Rising Nonferrous vs. Sichuan Hebang Biotechnology |
| Dalian Thermal vs. Zhejiang Publishing Media | Dalian Thermal vs. Time Publishing and | Dalian Thermal vs. Heilongjiang Publishing Media | Dalian Thermal vs. CSSC Offshore Marine |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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