Correlation Between China Minmetals and Chengtun Mining
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By analyzing existing cross correlation between China Minmetals Rare and Chengtun Mining Group, you can compare the effects of market volatilities on China Minmetals and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Chengtun Mining.
Diversification Opportunities for China Minmetals and Chengtun Mining
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Chengtun is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of China Minmetals i.e., China Minmetals and Chengtun Mining go up and down completely randomly.
Pair Corralation between China Minmetals and Chengtun Mining
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, China Minmetals Rare is 1.02 times less risky than Chengtun Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 637.00 in Chengtun Mining Group on November 2, 2024 and sell it today you would lose (131.00) from holding Chengtun Mining Group or give up 20.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Minmetals Rare vs. Chengtun Mining Group
Performance |
Timeline |
China Minmetals Rare |
Chengtun Mining Group |
China Minmetals and Chengtun Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Minmetals and Chengtun Mining
The main advantage of trading using opposite China Minmetals and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.China Minmetals vs. Xiangyang Automobile Bearing | China Minmetals vs. Anhui Jianghuai Automobile | China Minmetals vs. Iat Automobile Technology | China Minmetals vs. JCHX Mining Management |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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