Correlation Between Rising Nonferrous and Shuhua Sports
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shuhua Sports Co, you can compare the effects of market volatilities on Rising Nonferrous and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shuhua Sports.
Diversification Opportunities for Rising Nonferrous and Shuhua Sports
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rising and Shuhua is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shuhua Sports go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shuhua Sports
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.65 times more return on investment than Shuhua Sports. However, Rising Nonferrous Metals is 1.55 times less risky than Shuhua Sports. It trades about 0.06 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.16 per unit of risk. If you would invest 2,907 in Rising Nonferrous Metals on October 15, 2024 and sell it today you would earn a total of 77.00 from holding Rising Nonferrous Metals or generate 2.65% 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. Shuhua Sports Co
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shuhua Sports |
Rising Nonferrous and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shuhua Sports
The main advantage of trading using opposite Rising Nonferrous and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Rising Nonferrous vs. Heilongjiang Publishing Media | Rising Nonferrous vs. Thinkingdom Media Group | Rising Nonferrous vs. JiShi Media Co | Rising Nonferrous vs. Chongqing Shunbo Aluminum |
| Shuhua Sports vs. Fujian Anjoy Foods | Shuhua Sports vs. Ligao Foods CoLtd | Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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