Correlation Between China Minmetals and Longxing Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Minmetals Rare and Longxing Chemical Stock, you can compare the effects of market volatilities on China Minmetals and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Longxing Chemical.
Diversification Opportunities for China Minmetals and Longxing Chemical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Longxing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of China Minmetals i.e., China Minmetals and Longxing Chemical go up and down completely randomly.
Pair Corralation between China Minmetals and Longxing Chemical
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.47 times more return on investment than Longxing Chemical. However, China Minmetals Rare is 2.11 times less risky than Longxing Chemical. It trades about 0.05 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.13 per unit of risk. If you would invest 2,719 in China Minmetals Rare on November 3, 2024 and sell it today you would earn a total of 40.00 from holding China Minmetals Rare or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Longxing Chemical Stock
Performance |
| Timeline |
| China Minmetals Rare |
| Longxing Chemical Stock |
China Minmetals and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Longxing Chemical
The main advantage of trading using opposite China Minmetals and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| China Minmetals vs. Hongrun Construction Group | China Minmetals vs. Guangzhou Seagull Kitchen | China Minmetals vs. Chahua Modern Housewares | China Minmetals vs. Guangzhou KDT Machinery |
| Longxing Chemical vs. Hygon Information Technology | Longxing Chemical vs. YLZ Information Tech | Longxing Chemical vs. New Hope Dairy | Longxing Chemical vs. Eastroc Beverage Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |