Correlation Between Fujian Oriental and Rising Nonferrous
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By analyzing existing cross correlation between Fujian Oriental Silver and Rising Nonferrous Metals, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Rising Nonferrous.
Diversification Opportunities for Fujian Oriental and Rising Nonferrous
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Rising is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Fujian Oriental and Rising Nonferrous
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Rising Nonferrous. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Oriental Silver is 1.04 times less risky than Rising Nonferrous. The stock trades about -0.11 of its potential returns per unit of risk. The Rising Nonferrous Metals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,020 in Rising Nonferrous Metals on September 1, 2024 and sell it today you would lose (28.00) from holding Rising Nonferrous Metals or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Fujian Oriental Silver |
| Rising Nonferrous Metals |
Fujian Oriental and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Rising Nonferrous
The main advantage of trading using opposite Fujian Oriental and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Harvest Fund Management | Fujian Oriental vs. Qingdao Foods Co | Fujian Oriental vs. Shantou Wanshun Package | Fujian Oriental vs. Beijing Sanyuan Foods |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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