Correlation Between China Minmetals and Anhui Transport
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By analyzing existing cross correlation between China Minmetals Rare and Anhui Transport Consulting, you can compare the effects of market volatilities on China Minmetals and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Anhui Transport.
Diversification Opportunities for China Minmetals and Anhui Transport
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Anhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of China Minmetals i.e., China Minmetals and Anhui Transport go up and down completely randomly.
Pair Corralation between China Minmetals and Anhui Transport
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Anhui Transport. In addition to that, China Minmetals is 1.45 times more volatile than Anhui Transport Consulting. It trades about -0.1 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.2 per unit of volatility. If you would invest 898.00 in Anhui Transport Consulting on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Anhui Transport Consulting or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Anhui Transport Consulting
Performance |
| Timeline |
| China Minmetals Rare |
| Anhui Transport Cons |
China Minmetals and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Anhui Transport
The main advantage of trading using opposite China Minmetals and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport'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 |
| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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