Correlation Between Rising Nonferrous and Chahua Modern
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By analyzing existing cross correlation between Rising Nonferrous Metals and Chahua Modern Housewares, you can compare the effects of market volatilities on Rising Nonferrous and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Chahua Modern.
Diversification Opportunities for Rising Nonferrous and Chahua Modern
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Chahua is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Chahua Modern go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Chahua Modern
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.5 times less risky than Chahua Modern. The stock trades about -0.03 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Chahua Modern Housewares on October 18, 2024 and sell it today you would earn a total of 1,292 from holding Chahua Modern Housewares or generate 157.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Chahua Modern Housewares
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Chahua Modern Housewares |
Rising Nonferrous and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Chahua Modern
The main advantage of trading using opposite Rising Nonferrous and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Zhejiang Yongjin Metal | Chahua Modern vs. Rising Nonferrous Metals | Chahua Modern vs. Xinjiang Communications Construction | Chahua Modern vs. Eastern Communications Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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