Correlation Between Rising Nonferrous and Xingguang Agricultural
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By analyzing existing cross correlation between Rising Nonferrous Metals and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Rising Nonferrous and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Xingguang Agricultural.
Diversification Opportunities for Rising Nonferrous and Xingguang Agricultural
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rising and Xingguang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Xingguang Agricultural
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.57 times more return on investment than Xingguang Agricultural. However, Rising Nonferrous Metals is 1.77 times less risky than Xingguang Agricultural. It trades about -0.02 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.27 per unit of risk. If you would invest 3,014 in Rising Nonferrous Metals on October 11, 2024 and sell it today you would lose (58.00) from holding Rising Nonferrous Metals or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Xingguang Agricultural |
Rising Nonferrous and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Xingguang Agricultural
The main advantage of trading using opposite Rising Nonferrous and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Rising Nonferrous vs. Smartgiant Technology Co | Rising Nonferrous vs. Eyebright Medical Technology | Rising Nonferrous vs. Keeson Technology Corp | Rising Nonferrous 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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