Correlation Between China Nonferrous and Qiaoyin Environmental
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By analyzing existing cross correlation between China Nonferrous Metal and Qiaoyin Environmental Tech, you can compare the effects of market volatilities on China Nonferrous and Qiaoyin Environmental 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 China Nonferrous with a short position of Qiaoyin Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Nonferrous and Qiaoyin Environmental.
Diversification Opportunities for China Nonferrous and Qiaoyin Environmental
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Qiaoyin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Nonferrous Metal and Qiaoyin Environmental Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiaoyin Environmental and China Nonferrous 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 China Nonferrous Metal are associated (or correlated) with Qiaoyin Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiaoyin Environmental has no effect on the direction of China Nonferrous i.e., China Nonferrous and Qiaoyin Environmental go up and down completely randomly.
Pair Corralation between China Nonferrous and Qiaoyin Environmental
Assuming the 90 days trading horizon China Nonferrous Metal is expected to under-perform the Qiaoyin Environmental. But the stock apears to be less risky and, when comparing its historical volatility, China Nonferrous Metal is 1.7 times less risky than Qiaoyin Environmental. The stock trades about -0.02 of its potential returns per unit of risk. The Qiaoyin Environmental Tech is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 992.00 in Qiaoyin Environmental Tech on September 26, 2024 and sell it today you would earn a total of 81.00 from holding Qiaoyin Environmental Tech or generate 8.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Nonferrous Metal vs. Qiaoyin Environmental Tech
Performance |
Timeline |
China Nonferrous Metal |
Qiaoyin Environmental |
China Nonferrous and Qiaoyin Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Nonferrous and Qiaoyin Environmental
The main advantage of trading using opposite China Nonferrous and Qiaoyin Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Nonferrous position performs unexpectedly, Qiaoyin Environmental 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 Qiaoyin Environmental will offset losses from the drop in Qiaoyin Environmental's long position.China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold Mining |
Qiaoyin Environmental vs. Ming Yang Smart | Qiaoyin Environmental vs. 159681 | Qiaoyin Environmental vs. 159005 | Qiaoyin Environmental vs. Loctek Ergonomic 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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