Correlation Between Rising Nonferrous and Industrial
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By analyzing existing cross correlation between Rising Nonferrous Metals and Industrial and Commercial, you can compare the effects of market volatilities on Rising Nonferrous and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Industrial.
Diversification Opportunities for Rising Nonferrous and Industrial
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rising and Industrial is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Industrial go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Industrial
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Industrial. In addition to that, Rising Nonferrous is 1.65 times more volatile than Industrial and Commercial. It trades about -0.05 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.19 per unit of volatility. If you would invest 615.00 in Industrial and Commercial on October 30, 2024 and sell it today you would earn a total of 67.00 from holding Industrial and Commercial or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Rising Nonferrous Metals vs. Industrial and Commercial
Performance |
Timeline |
Rising Nonferrous Metals |
Industrial and Commercial |
Rising Nonferrous and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rising Nonferrous and Industrial
The main advantage of trading using opposite Rising Nonferrous and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
Industrial vs. Nuode Investment Co | Industrial vs. Harbin Hatou Investment | Industrial vs. Yili Chuanning Biotechnology | Industrial vs. China Asset Management |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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