Correlation Between Dalian Thermal and Rising Nonferrous
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By analyzing existing cross correlation between Dalian Thermal Power and Rising Nonferrous Metals, you can compare the effects of market volatilities on Dalian Thermal 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 Dalian Thermal with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Rising Nonferrous.
Diversification Opportunities for Dalian Thermal and Rising Nonferrous
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dalian and Rising is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power 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 Dalian Thermal 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 Dalian Thermal Power 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 Dalian Thermal i.e., Dalian Thermal and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Dalian Thermal and Rising Nonferrous
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 1.8 times more return on investment than Rising Nonferrous. However, Dalian Thermal is 1.8 times more volatile than Rising Nonferrous Metals. It trades about 0.05 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.01 per unit of risk. If you would invest 464.00 in Dalian Thermal Power on August 29, 2024 and sell it today you would earn a total of 324.00 from holding Dalian Thermal Power or generate 69.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Dalian Thermal Power |
| Rising Nonferrous Metals |
Dalian Thermal and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Rising Nonferrous
The main advantage of trading using opposite Dalian Thermal and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal 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.| Dalian Thermal vs. BYD Co Ltd | Dalian Thermal vs. China Mobile Limited | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. Industrial and Commercial |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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