Correlation Between China Minmetals and Zhejiang Kingland
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By analyzing existing cross correlation between China Minmetals Rare and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on China Minmetals and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Zhejiang Kingland.
Diversification Opportunities for China Minmetals and Zhejiang Kingland
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Zhejiang is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of China Minmetals i.e., China Minmetals and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between China Minmetals and Zhejiang Kingland
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.24 times more return on investment than Zhejiang Kingland. However, China Minmetals is 1.24 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.23 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.5 per unit of risk. If you would invest 3,085 in China Minmetals Rare on October 13, 2024 and sell it today you would lose (260.00) from holding China Minmetals Rare or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| China Minmetals Rare |
| Zhejiang Kingland |
China Minmetals and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Zhejiang Kingland
The main advantage of trading using opposite China Minmetals and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's 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 |
| Zhejiang Kingland vs. Suzhou Industrial Park | Zhejiang Kingland vs. Miracll Chemicals Co | Zhejiang Kingland vs. Xinxiang Chemical Fiber | Zhejiang Kingland vs. China Minmetals Rare |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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