Correlation Between China Minmetals and XiaMen HongXin
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By analyzing existing cross correlation between China Minmetals Rare and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on China Minmetals and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and XiaMen HongXin.
Diversification Opportunities for China Minmetals and XiaMen HongXin
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and XiaMen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of China Minmetals i.e., China Minmetals and XiaMen HongXin go up and down completely randomly.
Pair Corralation between China Minmetals and XiaMen HongXin
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.36 times more return on investment than XiaMen HongXin. However, China Minmetals Rare is 2.81 times less risky than XiaMen HongXin. It trades about -0.11 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.08 per unit of risk. If you would invest 2,894 in China Minmetals Rare on October 30, 2024 and sell it today you would lose (135.00) from holding China Minmetals Rare or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| China Minmetals Rare |
| XiaMen HongXin Electron |
China Minmetals and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and XiaMen HongXin
The main advantage of trading using opposite China Minmetals and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin'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 |
| XiaMen HongXin vs. Sportsoul Co Ltd | XiaMen HongXin vs. StarPower Semiconductor | XiaMen HongXin vs. Southchip Semiconductor Technology | XiaMen HongXin vs. Shannon Semiconductor Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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