Correlation Between China Minmetals and Hainan Mining
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By analyzing existing cross correlation between China Minmetals Rare and Hainan Mining Co, you can compare the effects of market volatilities on China Minmetals and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Hainan Mining.
Diversification Opportunities for China Minmetals and Hainan Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Hainan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of China Minmetals i.e., China Minmetals and Hainan Mining go up and down completely randomly.
Pair Corralation between China Minmetals and Hainan Mining
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 1.05 times more return on investment than Hainan Mining. However, China Minmetals is 1.05 times more volatile than Hainan Mining Co. It trades about 0.05 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.02 per unit of risk. If you would invest 2,719 in China Minmetals Rare on November 2, 2024 and sell it today you would earn a total of 40.00 from holding China Minmetals Rare or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Hainan Mining Co
Performance |
| Timeline |
| China Minmetals Rare |
| Hainan Mining |
China Minmetals and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Hainan Mining
The main advantage of trading using opposite China Minmetals and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan 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 |
| Hainan Mining vs. Integrated Electronic Systems | Hainan Mining vs. Fuzhou Rockchip Electronics | Hainan Mining vs. Zhangjiagang Freetrade Science | Hainan Mining vs. Sunny Loan Top |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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