Correlation Between China Minmetals and Qingdao Choho
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Minmetals Rare and Qingdao Choho Industrial, you can compare the effects of market volatilities on China Minmetals and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Qingdao Choho.
Diversification Opportunities for China Minmetals and Qingdao Choho
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Qingdao is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of China Minmetals i.e., China Minmetals and Qingdao Choho go up and down completely randomly.
Pair Corralation between China Minmetals and Qingdao Choho
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.04 times more return on investment than Qingdao Choho. However, China Minmetals is 1.04 times more volatile than Qingdao Choho Industrial. It trades about -0.01 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about -0.09 per unit of risk. If you would invest 2,885 in China Minmetals Rare on October 22, 2024 and sell it today you would lose (26.00) from holding China Minmetals Rare or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Minmetals Rare vs. Qingdao Choho Industrial
Performance |
| Timeline |
| China Minmetals Rare |
| Qingdao Choho Industrial |
China Minmetals and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Qingdao Choho
The main advantage of trading using opposite China Minmetals and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| China Minmetals vs. Jiangxi Lianchuang Opto electronic | China Minmetals vs. Guangdong Ellington Electronics | China Minmetals vs. TongFu Microelectronics Co | China Minmetals vs. Zoje Resources Investment |
| Qingdao Choho vs. Guangzhou Jinyi Media | Qingdao Choho vs. China Minmetals Rare | Qingdao Choho vs. Jonjee Hi tech Industrial | Qingdao Choho vs. Guangzhou Haozhi Industrial |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |