Correlation Between Rising Nonferrous and Shanghai Action
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shanghai Action Education, you can compare the effects of market volatilities on Rising Nonferrous and Shanghai Action 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 Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shanghai Action.
Diversification Opportunities for Rising Nonferrous and Shanghai Action
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rising and Shanghai is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shanghai Action go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shanghai Action
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.13 times more return on investment than Shanghai Action. However, Rising Nonferrous is 1.13 times more volatile than Shanghai Action Education. It trades about 0.1 of its potential returns per unit of risk. Shanghai Action Education is currently generating about -0.07 per unit of risk. If you would invest 2,907 in Rising Nonferrous Metals on October 17, 2024 and sell it today you would earn a total of 146.00 from holding Rising Nonferrous Metals or generate 5.02% 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. Shanghai Action Education
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shanghai Action Education |
Rising Nonferrous and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shanghai Action
The main advantage of trading using opposite Rising Nonferrous and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shanghai Action 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 Action will offset losses from the drop in Shanghai Action'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 Action vs. Xiangyu Medical Co | Shanghai Action vs. Guangdong Jingyi Metal | Shanghai Action vs. Winner Medical Co | Shanghai Action vs. Rising Nonferrous Metals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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