Correlation Between Rising Nonferrous and Hainan Mining
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By analyzing existing cross correlation between Rising Nonferrous Metals and Hainan Mining Co, you can compare the effects of market volatilities on Rising Nonferrous and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Hainan Mining.
Diversification Opportunities for Rising Nonferrous and Hainan Mining
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rising and Hainan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Hainan Mining go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Hainan Mining
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Hainan Mining. In addition to that, Rising Nonferrous is 1.02 times more volatile than Hainan Mining Co. It trades about -0.03 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of volatility. If you would invest 776.00 in Hainan Mining Co on October 21, 2024 and sell it today you would lose (94.00) from holding Hainan Mining Co or give up 12.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Hainan Mining Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Hainan Mining |
Rising Nonferrous and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Hainan Mining
The main advantage of trading using opposite Rising Nonferrous and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Rising Nonferrous vs. JCHX Mining Management | Rising Nonferrous vs. Shenzhen Silver Basis | Rising Nonferrous vs. Fujian Newland Computer | Rising Nonferrous vs. Jinhui Mining Co |
| Hainan Mining vs. Rising Nonferrous Metals | Hainan Mining vs. Heilongjiang Transport Development | Hainan Mining vs. Tianshan Aluminum Group | Hainan Mining vs. Anyang Iron Steel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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