Correlation Between China Minmetals and Ingenic Semiconductor
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By analyzing existing cross correlation between China Minmetals Rare and Ingenic Semiconductor, you can compare the effects of market volatilities on China Minmetals and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Ingenic Semiconductor.
Diversification Opportunities for China Minmetals and Ingenic Semiconductor
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Ingenic is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of China Minmetals i.e., China Minmetals and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between China Minmetals and Ingenic Semiconductor
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.78 times more return on investment than Ingenic Semiconductor. However, China Minmetals Rare is 1.28 times less risky than Ingenic Semiconductor. It trades about 0.05 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.01 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Ingenic Semiconductor
Performance |
| Timeline |
| China Minmetals Rare |
| Ingenic Semiconductor |
China Minmetals and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Ingenic Semiconductor
The main advantage of trading using opposite China Minmetals and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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