Correlation Between China Minmetals and Jonjee Hi-tech
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By analyzing existing cross correlation between China Minmetals Rare and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on China Minmetals and Jonjee Hi-tech 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 Jonjee Hi-tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Jonjee Hi-tech.
Diversification Opportunities for China Minmetals and Jonjee Hi-tech
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jonjee is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi-tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of China Minmetals i.e., China Minmetals and Jonjee Hi-tech go up and down completely randomly.
Pair Corralation between China Minmetals and Jonjee Hi-tech
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.12 times more return on investment than Jonjee Hi-tech. However, China Minmetals is 1.12 times more volatile than Jonjee Hi tech Industrial. It trades about 0.0 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about -0.04 per unit of risk. If you would invest 3,443 in China Minmetals Rare on September 2, 2024 and sell it today you would lose (353.00) from holding China Minmetals Rare or give up 10.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Jonjee Hi tech Industrial
Performance |
| Timeline |
| China Minmetals Rare |
| Jonjee Hi tech |
China Minmetals and Jonjee Hi-tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Jonjee Hi-tech
The main advantage of trading using opposite China Minmetals and Jonjee Hi-tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Jonjee Hi-tech 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 Jonjee Hi-tech will offset losses from the drop in Jonjee Hi-tech'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 |
| Jonjee Hi-tech vs. Nanjing Putian Telecommunications | Jonjee Hi-tech vs. Shenzhen Hifuture Electric | Jonjee Hi-tech vs. Tianjin Realty Development | Jonjee Hi-tech vs. Shenyang Huitian Thermal |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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