Correlation Between Rising Nonferrous and Sinosteel Luonai
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By analyzing existing cross correlation between Rising Nonferrous Metals and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Rising Nonferrous and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Sinosteel Luonai.
Diversification Opportunities for Rising Nonferrous and Sinosteel Luonai
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Sinosteel is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Sinosteel Luonai
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.51 times more return on investment than Sinosteel Luonai. However, Rising Nonferrous is 1.51 times more volatile than Sinosteel Luonai Materials. It trades about 0.1 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.41 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Sinosteel Luonai Materials
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Sinosteel Luonai Mat |
Rising Nonferrous and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Sinosteel Luonai
The main advantage of trading using opposite Rising Nonferrous and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai'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 |
| Sinosteel Luonai vs. China Minmetals Rare | Sinosteel Luonai vs. Shenyang Huitian Thermal | Sinosteel Luonai vs. Pengxin International Mining | Sinosteel Luonai 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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