Correlation Between China Minmetals and Shenzhen Bingchuan
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By analyzing existing cross correlation between China Minmetals Rare and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on China Minmetals and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Shenzhen Bingchuan.
Diversification Opportunities for China Minmetals and Shenzhen Bingchuan
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Shenzhen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of China Minmetals i.e., China Minmetals and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between China Minmetals and Shenzhen Bingchuan
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Shenzhen Bingchuan. But the stock apears to be less risky and, when comparing its historical volatility, China Minmetals Rare is 1.85 times less risky than Shenzhen Bingchuan. The stock trades about -0.02 of its potential returns per unit of risk. The Shenzhen Bingchuan Network is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,648 in Shenzhen Bingchuan Network on October 16, 2024 and sell it today you would earn a total of 168.00 from holding Shenzhen Bingchuan Network or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| China Minmetals Rare |
| Shenzhen Bingchuan |
China Minmetals and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Shenzhen Bingchuan
The main advantage of trading using opposite China Minmetals and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| China Minmetals vs. Hangzhou Gaoxin Rubber | China Minmetals vs. King Strong New Material | China Minmetals vs. Western Metal Materials | China Minmetals vs. Kangxin New Materials |
| Shenzhen Bingchuan vs. Suzhou Douson Drilling | Shenzhen Bingchuan vs. Pengxin International Mining | Shenzhen Bingchuan vs. Hefei Metalforming Mach | Shenzhen Bingchuan vs. Zhengzhou Coal Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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