Correlation Between China Asset and Rising Nonferrous
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By analyzing existing cross correlation between China Asset Management and Rising Nonferrous Metals, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Rising Nonferrous.
Diversification Opportunities for China Asset and Rising Nonferrous
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Rising is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 Asset Management 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 China Asset i.e., China Asset and Rising Nonferrous go up and down completely randomly.
Pair Corralation between China Asset and Rising Nonferrous
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.38 times more return on investment than Rising Nonferrous. However, China Asset Management is 2.64 times less risky than Rising Nonferrous. It trades about 0.09 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.03 per unit of risk. If you would invest 264.00 in China Asset Management on October 11, 2024 and sell it today you would earn a total of 106.00 from holding China Asset Management or generate 40.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Asset Management vs. Rising Nonferrous Metals
Performance |
Timeline |
China Asset Management |
Rising Nonferrous Metals |
China Asset and Rising Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Asset and Rising Nonferrous
The main advantage of trading using opposite China Asset and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.China Asset vs. Nanjing Vishee Medical | China Asset vs. Qingdao Haier Biomedical | China Asset vs. Zhongshan Public Utilities | China Asset vs. Time Publishing and |
Rising Nonferrous vs. Zhejiang Kingland Pipeline | Rising Nonferrous vs. China Asset Management | Rising Nonferrous vs. Chengtun Mining Group | Rising Nonferrous vs. Zhongrun Resources Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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