Correlation Between Rising Nonferrous and Jiangsu Yueda
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Rising Nonferrous and Jiangsu Yueda 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 Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jiangsu Yueda.
Diversification Opportunities for Rising Nonferrous and Jiangsu Yueda
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jiangsu Yueda
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Jiangsu Yueda. In addition to that, Rising Nonferrous is 1.15 times more volatile than Jiangsu Yueda Investment. It trades about -0.15 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.16 per unit of volatility. If you would invest 463.00 in Jiangsu Yueda Investment on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Jiangsu Yueda Investment or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jiangsu Yueda Investment |
Rising Nonferrous and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jiangsu Yueda
The main advantage of trading using opposite Rising Nonferrous and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Rising Nonferrous vs. Allwin Telecommunication Co | Rising Nonferrous vs. Lander Sports Development | Rising Nonferrous vs. Dook Media Group | Rising Nonferrous vs. JiShi Media Co |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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