Correlation Between Shandong Homey and Rising Nonferrous
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By analyzing existing cross correlation between Shandong Homey Aquatic and Rising Nonferrous Metals, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Rising Nonferrous.
Diversification Opportunities for Shandong Homey and Rising Nonferrous
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Rising is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Shandong Homey and Rising Nonferrous
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 1.46 times more return on investment than Rising Nonferrous. However, Shandong Homey is 1.46 times more volatile than Rising Nonferrous Metals. It trades about 0.11 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.06 per unit of risk. If you would invest 150.00 in Shandong Homey Aquatic on November 2, 2024 and sell it today you would earn a total of 66.00 from holding Shandong Homey Aquatic or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Rising Nonferrous Metals |
Shandong Homey and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Rising Nonferrous
The main advantage of trading using opposite Shandong Homey and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Allied Machinery Co | Shandong Homey vs. Shanghai Jinfeng Wine | Shandong Homey vs. Jinling Hotel Corp | Shandong Homey vs. Xiamen Jihong Package |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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