Correlation Between North Copper and China Minmetals
Specify exactly 2 symbols:
By analyzing existing cross correlation between North Copper Shanxi and China Minmetals Rare, you can compare the effects of market volatilities on North Copper and China Minmetals 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 North Copper with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and China Minmetals.
Diversification Opportunities for North Copper and China Minmetals
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare and North Copper 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 North Copper Shanxi are associated (or correlated) with China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of North Copper i.e., North Copper and China Minmetals go up and down completely randomly.
Pair Corralation between North Copper and China Minmetals
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 2.26 times more return on investment than China Minmetals. However, North Copper is 2.26 times more volatile than China Minmetals Rare. It trades about 0.25 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.05 per unit of risk. If you would invest 761.00 in North Copper Shanxi on November 2, 2024 and sell it today you would earn a total of 145.00 from holding North Copper Shanxi or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. China Minmetals Rare
Performance |
| Timeline |
| North Copper Shanxi |
| China Minmetals Rare |
North Copper and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and China Minmetals
The main advantage of trading using opposite North Copper and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, China Minmetals 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 Minmetals will offset losses from the drop in China Minmetals' long position.| North Copper vs. Bus Online Co | North Copper vs. Holitech Technology Co | North Copper vs. Gome Telecom Equipment | North Copper vs. Cultural Investment Holdings |
| China Minmetals vs. Xiangyang Automobile Bearing | China Minmetals vs. Anhui Jianghuai Automobile | China Minmetals vs. Iat Automobile Technology | China Minmetals vs. JCHX Mining Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |