Correlation Between China Minmetals and Jiangsu Financial
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By analyzing existing cross correlation between China Minmetals Rare and Jiangsu Financial Leasing, you can compare the effects of market volatilities on China Minmetals and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Jiangsu Financial.
Diversification Opportunities for China Minmetals and Jiangsu Financial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Jiangsu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of China Minmetals i.e., China Minmetals and Jiangsu Financial go up and down completely randomly.
Pair Corralation between China Minmetals and Jiangsu Financial
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Jiangsu Financial. In addition to that, China Minmetals is 1.47 times more volatile than Jiangsu Financial Leasing. It trades about -0.29 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.01 per unit of volatility. If you would invest 518.00 in Jiangsu Financial Leasing on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Jiangsu Financial Leasing or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| China Minmetals Rare |
| Jiangsu Financial Leasing |
China Minmetals and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Jiangsu Financial
The main advantage of trading using opposite China Minmetals and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| China Minmetals vs. Guocheng Mining Co | China Minmetals vs. SSAW Hotels Resorts | China Minmetals vs. Qtone Education Group | China Minmetals vs. Chengtun Mining Group |
| Jiangsu Financial vs. Oppein Home Group | Jiangsu Financial vs. Central Plains Environment | Jiangsu Financial vs. Tongxing Environmental Protection | Jiangsu Financial vs. Shandong Homey Aquatic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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