Correlation Between Xinjiang Tianrun and Rising Nonferrous
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Rising Nonferrous Metals, you can compare the effects of market volatilities on Xinjiang Tianrun and Rising Nonferrous 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 Xinjiang Tianrun with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Rising Nonferrous.
Diversification Opportunities for Xinjiang Tianrun and Rising Nonferrous
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Rising is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy are associated (or correlated) with Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Rising Nonferrous
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to generate 0.72 times more return on investment than Rising Nonferrous. However, Xinjiang Tianrun Dairy is 1.39 times less risky than Rising Nonferrous. It trades about 0.19 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.04 per unit of risk. If you would invest 855.00 in Xinjiang Tianrun Dairy on August 28, 2024 and sell it today you would earn a total of 84.00 from holding Xinjiang Tianrun Dairy or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Rising Nonferrous Metals |
Xinjiang Tianrun and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Rising Nonferrous
The main advantage of trading using opposite Xinjiang Tianrun and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Xinjiang Tianrun vs. Rising Nonferrous Metals | Xinjiang Tianrun vs. Gansu Yasheng Industrial | Xinjiang Tianrun vs. Youyou Foods Co | Xinjiang Tianrun vs. Qinghaihuading Industrial Co |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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