Correlation Between Gem Year and China Nonferrous
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By analyzing existing cross correlation between Gem Year Industrial Co and China Nonferrous Metal, you can compare the effects of market volatilities on Gem Year and China 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 Gem Year with a short position of China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and China Nonferrous.
Diversification Opportunities for Gem Year and China Nonferrous
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and China Nonferrous Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Nonferrous Metal and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with China Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Nonferrous Metal has no effect on the direction of Gem Year i.e., Gem Year and China Nonferrous go up and down completely randomly.
Pair Corralation between Gem Year and China Nonferrous
Assuming the 90 days trading horizon Gem Year is expected to generate 1.72 times less return on investment than China Nonferrous. In addition to that, Gem Year is 1.09 times more volatile than China Nonferrous Metal. It trades about 0.03 of its total potential returns per unit of risk. China Nonferrous Metal is currently generating about 0.05 per unit of volatility. If you would invest 503.00 in China Nonferrous Metal on September 1, 2024 and sell it today you would earn a total of 12.00 from holding China Nonferrous Metal or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gem Year Industrial Co vs. China Nonferrous Metal
Performance |
| Timeline |
| Gem Year Industrial |
| China Nonferrous Metal |
Gem Year and China Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and China Nonferrous
The main advantage of trading using opposite Gem Year and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, China 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 China Nonferrous will offset losses from the drop in China Nonferrous' long position.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
| China Nonferrous vs. Allwin Telecommunication Co | China Nonferrous vs. Jilin Jlu Communication | China Nonferrous vs. Guangdong Shenglu Telecommunication | China Nonferrous vs. Zhejiang JIULI Hi tech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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