Correlation Between Rising Nonferrous and China Aluminum
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By analyzing existing cross correlation between Rising Nonferrous Metals and China Aluminum International, you can compare the effects of market volatilities on Rising Nonferrous and China Aluminum 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 China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and China Aluminum.
Diversification Opportunities for Rising Nonferrous and China Aluminum
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and China Aluminum go up and down completely randomly.
Pair Corralation between Rising Nonferrous and China Aluminum
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.19 times more return on investment than China Aluminum. However, Rising Nonferrous is 1.19 times more volatile than China Aluminum International. It trades about 0.06 of its potential returns per unit of risk. China Aluminum International is currently generating about 0.05 per unit of risk. If you would invest 2,501 in Rising Nonferrous Metals on November 2, 2024 and sell it today you would earn a total of 337.00 from holding Rising Nonferrous Metals or generate 13.47% 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. China Aluminum International
Performance |
| Timeline |
| Rising Nonferrous Metals |
| China Aluminum Inter |
Rising Nonferrous and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and China Aluminum
The main advantage of trading using opposite Rising Nonferrous and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum's long position.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| China Aluminum vs. Pinlive Foods Co | China Aluminum vs. Xiwang Foodstuffs Co | China Aluminum vs. Shantou Wanshun Package | China Aluminum vs. Gan Yuan Foods |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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