Correlation Between Rising Nonferrous and Shanghai Huayi
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By analyzing existing cross correlation between Rising Nonferrous Metals and Shanghai Huayi Group, you can compare the effects of market volatilities on Rising Nonferrous and Shanghai Huayi 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 Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Shanghai Huayi.
Diversification Opportunities for Rising Nonferrous and Shanghai Huayi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rising and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Shanghai Huayi
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Shanghai Huayi. In addition to that, Rising Nonferrous is 1.59 times more volatile than Shanghai Huayi Group. It trades about -0.03 of its total potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.11 per unit of volatility. If you would invest 54.00 in Shanghai Huayi Group on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Shanghai Huayi Group or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Shanghai Huayi Group
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Shanghai Huayi Group |
Rising Nonferrous and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Shanghai Huayi
The main advantage of trading using opposite Rising Nonferrous and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Shanghai Huayi 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 Huayi will offset losses from the drop in Shanghai Huayi's long position.| Rising Nonferrous vs. Beijing Yanjing Brewery | Rising Nonferrous vs. Easyhome New Retail | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. Jiangsu Yanghe Brewery |
| Shanghai Huayi vs. Rising Nonferrous Metals | Shanghai Huayi vs. Shanghai Yanpu Metal | Shanghai Huayi vs. Jiangsu GDK Biotechnology | Shanghai Huayi vs. Wuhan Hvsen Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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