Correlation Between Rising Nonferrous and Ningbo Jintian
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By analyzing existing cross correlation between Rising Nonferrous Metals and Ningbo Jintian Copper, you can compare the effects of market volatilities on Rising Nonferrous and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Ningbo Jintian.
Diversification Opportunities for Rising Nonferrous and Ningbo Jintian
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Ningbo is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Ningbo Jintian
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.67 times more return on investment than Ningbo Jintian. However, Rising Nonferrous is 1.67 times more volatile than Ningbo Jintian Copper. It trades about 0.0 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about -0.02 per unit of risk. If you would invest 2,867 in Rising Nonferrous Metals on October 29, 2024 and sell it today you would lose (29.00) from holding Rising Nonferrous Metals or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Ningbo Jintian Copper |
Rising Nonferrous and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Ningbo Jintian
The main advantage of trading using opposite Rising Nonferrous and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian'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 |
| Ningbo Jintian vs. Anhui Transport Consulting | Ningbo Jintian vs. Road Environment Technology | Ningbo Jintian vs. Kidswant Children Products | Ningbo Jintian vs. Guangdong Qunxing Toys |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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