Correlation Between Beijing HuaYuanYiTong and China Nonferrous
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and China Nonferrous Metal, you can compare the effects of market volatilities on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong with a short position of China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and China Nonferrous.
Diversification Opportunities for Beijing HuaYuanYiTong and China Nonferrous
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and China Nonferrous go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and China Nonferrous
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to under-perform the China Nonferrous. In addition to that, Beijing HuaYuanYiTong is 1.78 times more volatile than China Nonferrous Metal. It trades about -0.3 of its total potential returns per unit of risk. China Nonferrous Metal is currently generating about -0.02 per unit of volatility. If you would invest 507.00 in China Nonferrous Metal on September 26, 2024 and sell it today you would lose (4.00) from holding China Nonferrous Metal or give up 0.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. China Nonferrous Metal
Performance |
Timeline |
Beijing HuaYuanYiTong |
China Nonferrous Metal |
Beijing HuaYuanYiTong and China Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing HuaYuanYiTong and China Nonferrous
The main advantage of trading using opposite Beijing HuaYuanYiTong and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong 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.Beijing HuaYuanYiTong vs. Ningbo Homelink Eco iTech | Beijing HuaYuanYiTong vs. UE Furniture Co | Beijing HuaYuanYiTong vs. Anhui Gujing Distillery | Beijing HuaYuanYiTong vs. Lootom Telcovideo Network |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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