Correlation Between Tongling Nonferrous and Northern United
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Northern United Publishing, you can compare the effects of market volatilities on Tongling Nonferrous and Northern United 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 Tongling Nonferrous with a short position of Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Northern United.
Diversification Opportunities for Tongling Nonferrous and Northern United
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongling and Northern is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ and Tongling 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 Tongling Nonferrous Metals are associated (or correlated) with Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Northern United go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Northern United
Assuming the 90 days trading horizon Tongling Nonferrous is expected to generate 2.25 times less return on investment than Northern United. But when comparing it to its historical volatility, Tongling Nonferrous Metals is 1.06 times less risky than Northern United. It trades about 0.11 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 529.00 in Northern United Publishing on September 15, 2024 and sell it today you would earn a total of 241.00 from holding Northern United Publishing or generate 45.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tongling Nonferrous Metals vs. Northern United Publishing
Performance |
Timeline |
Tongling Nonferrous |
Northern United Publ |
Tongling Nonferrous and Northern United Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongling Nonferrous and Northern United
The main advantage of trading using opposite Tongling Nonferrous and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Shandong Gold Mining |
Northern United vs. Zhejiang Publishing Media | Northern United vs. Western Metal Materials | Northern United vs. Zhejiang Yayi Metal | Northern United vs. Tongling Nonferrous Metals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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