Correlation Between Shenzhen Topway and China Nonferrous
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By analyzing existing cross correlation between Shenzhen Topway Video and China Nonferrous Metal, you can compare the effects of market volatilities on Shenzhen Topway 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 Shenzhen Topway with a short position of China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and China Nonferrous.
Diversification Opportunities for Shenzhen Topway and China Nonferrous
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video 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 Shenzhen Topway 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 Shenzhen Topway Video 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 Shenzhen Topway i.e., Shenzhen Topway and China Nonferrous go up and down completely randomly.
Pair Corralation between Shenzhen Topway and China Nonferrous
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to under-perform the China Nonferrous. In addition to that, Shenzhen Topway is 1.39 times more volatile than China Nonferrous Metal. It trades about -0.04 of its total potential returns per unit of risk. China Nonferrous Metal is currently generating about 0.03 per unit of volatility. If you would invest 452.00 in China Nonferrous Metal on September 25, 2024 and sell it today you would earn a total of 45.00 from holding China Nonferrous Metal or generate 9.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Topway Video vs. China Nonferrous Metal
Performance |
Timeline |
Shenzhen Topway Video |
China Nonferrous Metal |
Shenzhen Topway and China Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Topway and China Nonferrous
The main advantage of trading using opposite Shenzhen Topway and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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.Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Mobile Limited |
China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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