Correlation Between China Minmetals and Zoje Resources
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By analyzing existing cross correlation between China Minmetals Rare and Zoje Resources Investment, you can compare the effects of market volatilities on China Minmetals and Zoje Resources 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 Minmetals with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Zoje Resources.
Diversification Opportunities for China Minmetals and Zoje Resources
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Zoje is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and China Minmetals 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 Minmetals Rare are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of China Minmetals i.e., China Minmetals and Zoje Resources go up and down completely randomly.
Pair Corralation between China Minmetals and Zoje Resources
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.88 times more return on investment than Zoje Resources. However, China Minmetals Rare is 1.14 times less risky than Zoje Resources. It trades about 0.04 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.01 per unit of risk. If you would invest 3,033 in China Minmetals Rare on September 1, 2024 and sell it today you would earn a total of 57.00 from holding China Minmetals Rare or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Zoje Resources Investment
Performance |
| Timeline |
| China Minmetals Rare |
| Zoje Resources Investment |
China Minmetals and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Zoje Resources
The main advantage of trading using opposite China Minmetals and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
| Zoje Resources vs. New China Life | Zoje Resources vs. Ming Yang Smart | Zoje Resources vs. 159681 | Zoje Resources vs. 159005 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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