Correlation Between Rising Nonferrous and Hainan Haiqi
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By analyzing existing cross correlation between Rising Nonferrous Metals and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Rising Nonferrous and Hainan Haiqi 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 Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Hainan Haiqi.
Diversification Opportunities for Rising Nonferrous and Hainan Haiqi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Hainan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Hainan Haiqi
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.08 times more return on investment than Hainan Haiqi. However, Rising Nonferrous is 1.08 times more volatile than Hainan Haiqi Transportation. It trades about 0.03 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.5 per unit of risk. If you would invest 2,952 in Rising Nonferrous Metals on October 14, 2024 and sell it today you would earn a total of 32.00 from holding Rising Nonferrous Metals or generate 1.08% 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. Hainan Haiqi Transportation
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Hainan Haiqi Transpo |
Rising Nonferrous and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Hainan Haiqi
The main advantage of trading using opposite Rising Nonferrous and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Hainan Haiqi 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 Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Rising Nonferrous vs. Shenzhen MYS Environmental | Rising Nonferrous vs. Hangzhou Guotai Environmental | Rising Nonferrous vs. Lingyuan Iron Steel | Rising Nonferrous vs. Penyao Environmental Protection |
| Hainan Haiqi vs. Rising Nonferrous Metals | Hainan Haiqi vs. Shenzhen Topway Video | Hainan Haiqi vs. Guocheng Mining Co | Hainan Haiqi vs. Pengxin International Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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