Correlation Between Rising Nonferrous and Xiamen Bank
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By analyzing existing cross correlation between Rising Nonferrous Metals and Xiamen Bank Co, you can compare the effects of market volatilities on Rising Nonferrous and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Xiamen Bank.
Diversification Opportunities for Rising Nonferrous and Xiamen Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Xiamen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Xiamen Bank go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Xiamen Bank
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 1.06 times less return on investment than Xiamen Bank. In addition to that, Rising Nonferrous is 1.34 times more volatile than Xiamen Bank Co. It trades about 0.02 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.03 per unit of volatility. If you would invest 527.00 in Xiamen Bank Co on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Xiamen Bank Co or generate 5.5% 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. Xiamen Bank Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Xiamen Bank |
Rising Nonferrous and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Xiamen Bank
The main advantage of trading using opposite Rising Nonferrous and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co | Rising Nonferrous vs. Hoshine Silicon Ind |
| Xiamen Bank vs. Heilongjiang Transport Development | Xiamen Bank vs. Zhejiang Yayi Metal | Xiamen Bank vs. Rising Nonferrous Metals | Xiamen Bank vs. Guangdong Jingyi Metal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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