Correlation Between China Minmetals and A Zenith
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By analyzing existing cross correlation between China Minmetals Rare and A Zenith Home Furnishings, you can compare the effects of market volatilities on China Minmetals and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and A Zenith.
Diversification Opportunities for China Minmetals and A Zenith
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and 603389 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of China Minmetals i.e., China Minmetals and A Zenith go up and down completely randomly.
Pair Corralation between China Minmetals and A Zenith
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.28 times more return on investment than A Zenith. However, China Minmetals Rare is 3.58 times less risky than A Zenith. It trades about -0.3 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about -0.11 per unit of risk. If you would invest 3,104 in China Minmetals Rare on October 11, 2024 and sell it today you would lose (323.00) from holding China Minmetals Rare or give up 10.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. A Zenith Home Furnishings
Performance |
| Timeline |
| China Minmetals Rare |
| A Zenith Home |
China Minmetals and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and A Zenith
The main advantage of trading using opposite China Minmetals and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith'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 |
| A Zenith vs. China Minmetals Rare | A Zenith vs. Shenyang Huitian Thermal | A Zenith vs. Zhongrun Resources Investment | A Zenith vs. Chengtun Mining Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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