Correlation Between Rising Nonferrous and Shanghai OPM
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Rising Nonferrous and Shanghai OPM 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 OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shanghai OPM.
Diversification Opportunities for Rising Nonferrous and Shanghai OPM
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rising and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shanghai OPM go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shanghai OPM
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 2.9 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Rising Nonferrous Metals is 1.51 times less risky than Shanghai OPM. It trades about 0.06 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,644 in Shanghai OPM Biosciences on November 2, 2024 and sell it today you would earn a total of 1,272 from holding Shanghai OPM Biosciences or generate 48.11% 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. Shanghai OPM Biosciences
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shanghai OPM Biosciences |
Rising Nonferrous and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shanghai OPM
The main advantage of trading using opposite Rising Nonferrous and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM'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 |
| Shanghai OPM vs. Jinhui Mining Co | Shanghai OPM vs. Shenyang Blue Silver | Shanghai OPM vs. Guangxi Wuzhou Communications | Shanghai OPM vs. Xinjiang Baodi Mining |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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