Correlation Between Rising Nonferrous and Jinhui Mining
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jinhui Mining Co, you can compare the effects of market volatilities on Rising Nonferrous and Jinhui 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jinhui Mining.
Diversification Opportunities for Rising Nonferrous and Jinhui Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rising and Jinhui is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Jinhui Mining go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jinhui Mining
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Jinhui Mining. In addition to that, Rising Nonferrous is 1.32 times more volatile than Jinhui Mining Co. It trades about -0.14 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.04 per unit of volatility. If you would invest 1,134 in Jinhui Mining Co on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Jinhui Mining Co or generate 0.62% 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. Jinhui Mining Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jinhui Mining |
Rising Nonferrous and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jinhui Mining
The main advantage of trading using opposite Rising Nonferrous and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Rising Nonferrous vs. Shanghai Yanpu Metal | Rising Nonferrous vs. Sanbo Hospital Management | Rising Nonferrous vs. Jiangsu Hoperun Software | Rising Nonferrous vs. Servyou Software Group |
| Jinhui Mining vs. Smartgiant Technology Co | Jinhui Mining vs. Offcn Education Technology | Jinhui Mining vs. Zhejiang Publishing Media | Jinhui Mining vs. Olympic Circuit Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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