Correlation Between Zhangjiagang Freetrade and Rising Nonferrous
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Rising Nonferrous Metals, you can compare the effects of market volatilities on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Rising Nonferrous.
Diversification Opportunities for Zhangjiagang Freetrade and Rising Nonferrous
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhangjiagang and Rising is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Rising Nonferrous
Assuming the 90 days trading horizon Zhangjiagang Freetrade Science is expected to generate 0.94 times more return on investment than Rising Nonferrous. However, Zhangjiagang Freetrade Science is 1.06 times less risky than Rising Nonferrous. It trades about 0.01 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 385.00 in Zhangjiagang Freetrade Science on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Zhangjiagang Freetrade Science or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Rising Nonferrous Metals |
Zhangjiagang Freetrade and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Rising Nonferrous
The main advantage of trading using opposite Zhangjiagang Freetrade and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade 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.| Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Bank of China | Zhangjiagang Freetrade vs. PetroChina Co Ltd |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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