Correlation Between China Minmetals and Ningbo Jintian
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By analyzing existing cross correlation between China Minmetals Rare and Ningbo Jintian Copper, you can compare the effects of market volatilities on China Minmetals and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Ningbo Jintian.
Diversification Opportunities for China Minmetals and Ningbo Jintian
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Ningbo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of China Minmetals i.e., China Minmetals and Ningbo Jintian go up and down completely randomly.
Pair Corralation between China Minmetals and Ningbo Jintian
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.14 times more return on investment than Ningbo Jintian. However, China Minmetals is 1.14 times more volatile than Ningbo Jintian Copper. It trades about 0.07 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.06 per unit of risk. If you would invest 2,312 in China Minmetals Rare on October 25, 2024 and sell it today you would earn a total of 494.00 from holding China Minmetals Rare or generate 21.37% 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. Ningbo Jintian Copper
Performance |
| Timeline |
| China Minmetals Rare |
| Ningbo Jintian Copper |
China Minmetals and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Ningbo Jintian
The main advantage of trading using opposite China Minmetals and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co |
| Ningbo Jintian vs. China Minmetals Rare | Ningbo Jintian vs. Thinkon Semiconductor Jinzhou | Ningbo Jintian vs. Rising Nonferrous Metals | Ningbo Jintian vs. Sichuan Yahua Industrial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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