Correlation Between Advanced Technology and China Minmetals
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By analyzing existing cross correlation between Advanced Technology Materials and China Minmetals Rare, you can compare the effects of market volatilities on Advanced Technology and China Minmetals 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 Advanced Technology with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and China Minmetals.
Diversification Opportunities for Advanced Technology and China Minmetals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advanced and China is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare and Advanced Technology 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 Advanced Technology Materials are associated (or correlated) with China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Advanced Technology i.e., Advanced Technology and China Minmetals go up and down completely randomly.
Pair Corralation between Advanced Technology and China Minmetals
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 0.95 times more return on investment than China Minmetals. However, Advanced Technology Materials is 1.05 times less risky than China Minmetals. It trades about 0.04 of its potential returns per unit of risk. China Minmetals Rare is currently generating about -0.02 per unit of risk. If you would invest 870.00 in Advanced Technology Materials on November 2, 2024 and sell it today you would earn a total of 282.00 from holding Advanced Technology Materials or generate 32.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Technology Materials vs. China Minmetals Rare
Performance |
| Timeline |
| Advanced Technology |
| China Minmetals Rare |
Advanced Technology and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Technology and China Minmetals
The main advantage of trading using opposite Advanced Technology and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Advanced Technology vs. Shuhua Sports Co | Advanced Technology vs. Yunnan Jianzhijia Health Chain | Advanced Technology vs. PKU HealthCare Corp | Advanced Technology vs. Lander Sports Development |
| China Minmetals vs. Xiangyang Automobile Bearing | China Minmetals vs. Anhui Jianghuai Automobile | China Minmetals vs. Iat Automobile Technology | China Minmetals vs. JCHX Mining Management |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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