Correlation Between Chengdu B and Rising Nonferrous
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By analyzing existing cross correlation between Chengdu B ray Media and Rising Nonferrous Metals, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Rising Nonferrous.
Diversification Opportunities for Chengdu B and Rising Nonferrous
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and Rising is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media 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 Chengdu B 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 Chengdu B ray Media 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 Chengdu B i.e., Chengdu B and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Chengdu B and Rising Nonferrous
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Rising Nonferrous. In addition to that, Chengdu B is 1.25 times more volatile than Rising Nonferrous Metals. It trades about -0.02 of its total potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.01 per unit of volatility. If you would invest 3,663 in Rising Nonferrous Metals on January 24, 2025 and sell it today you would lose (231.00) from holding Rising Nonferrous Metals or give up 6.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Rising Nonferrous Metals
Performance |
| Timeline |
| Chengdu B ray |
| Rising Nonferrous Metals |
Chengdu B and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Rising Nonferrous
The main advantage of trading using opposite Chengdu B and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Industrial and Commercial | Chengdu B vs. Agricultural Bank of | Chengdu B vs. China Construction Bank | Chengdu B vs. Bank of China |
| Rising Nonferrous vs. Zhiyang Innovation Technology | Rising Nonferrous vs. Linewell Software Co | Rising Nonferrous vs. Shanghai Jinfeng Wine | Rising Nonferrous vs. iSoftStone Information Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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