Correlation Between China Minmetals and Fujian Nanwang
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By analyzing existing cross correlation between China Minmetals Rare and Fujian Nanwang Environment, you can compare the effects of market volatilities on China Minmetals and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Fujian Nanwang.
Diversification Opportunities for China Minmetals and Fujian Nanwang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of China Minmetals i.e., China Minmetals and Fujian Nanwang go up and down completely randomly.
Pair Corralation between China Minmetals and Fujian Nanwang
Assuming the 90 days trading horizon China Minmetals is expected to generate 1.26 times less return on investment than Fujian Nanwang. In addition to that, China Minmetals is 2.09 times more volatile than Fujian Nanwang Environment. It trades about 0.06 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of volatility. If you would invest 1,159 in Fujian Nanwang Environment on August 31, 2024 and sell it today you would earn a total of 76.00 from holding Fujian Nanwang Environment or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Fujian Nanwang Environment
Performance |
| Timeline |
| China Minmetals Rare |
| Fujian Nanwang Envir |
China Minmetals and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Fujian Nanwang
The main advantage of trading using opposite China Minmetals and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co | China Minmetals vs. Hoshine Silicon Ind |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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