Correlation Between Rising Nonferrous and Shanghai Rongtai
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shanghai Rongtai Health, you can compare the effects of market volatilities on Rising Nonferrous and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shanghai Rongtai.
Diversification Opportunities for Rising Nonferrous and Shanghai Rongtai
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rising and Shanghai is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shanghai Rongtai
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.31 times more return on investment than Shanghai Rongtai. However, Rising Nonferrous is 1.31 times more volatile than Shanghai Rongtai Health. It trades about 0.11 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.24 per unit of risk. If you would invest 2,894 in Rising Nonferrous Metals on October 18, 2024 and sell it today you would earn a total of 159.00 from holding Rising Nonferrous Metals or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shanghai Rongtai Health |
Rising Nonferrous and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shanghai Rongtai
The main advantage of trading using opposite Rising Nonferrous and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Rising Nonferrous vs. Guotai Epoint Software | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. China National Software | Rising Nonferrous vs. Hongrun Construction Group |
| Shanghai Rongtai vs. Rising Nonferrous Metals | Shanghai Rongtai vs. China Eastern Airlines | Shanghai Rongtai vs. HUAQIN TECHNOLOGY LTD | Shanghai Rongtai vs. Xinjiang Baodi 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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