Correlation Between China National and Rising Nonferrous
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By analyzing existing cross correlation between China National Software and Rising Nonferrous Metals, you can compare the effects of market volatilities on China National 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 China National with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Rising Nonferrous.
Diversification Opportunities for China National and Rising Nonferrous
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Rising is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China National Software 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 China National 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 China National Software 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 China National i.e., China National and Rising Nonferrous go up and down completely randomly.
Pair Corralation between China National and Rising Nonferrous
Assuming the 90 days trading horizon China National Software is expected to generate 1.39 times more return on investment than Rising Nonferrous. However, China National is 1.39 times more volatile than Rising Nonferrous Metals. It trades about 0.0 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.02 per unit of risk. If you would invest 6,158 in China National Software on October 17, 2024 and sell it today you would lose (1,495) from holding China National Software or give up 24.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Rising Nonferrous Metals
Performance |
| Timeline |
| China National Software |
| Rising Nonferrous Metals |
China National and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Rising Nonferrous
The main advantage of trading using opposite China National and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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.| China National vs. China Publishing Media | China National vs. Tianshui Huatian Technology | China National vs. Guangzhou Jinyi Media | China National vs. Anhui Xinhua Media |
| Rising Nonferrous vs. Guotai Epoint Software | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. China National Software | Rising Nonferrous vs. Hongrun Construction Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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