Correlation Between Zoje Resources and China Minmetals
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By analyzing existing cross correlation between Zoje Resources Investment and China Minmetals Rare, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and China Minmetals.
Diversification Opportunities for Zoje Resources and China Minmetals
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoje and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment 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 Zoje Resources 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 Zoje Resources Investment 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 Zoje Resources i.e., Zoje Resources and China Minmetals go up and down completely randomly.
Pair Corralation between Zoje Resources and China Minmetals
Assuming the 90 days trading horizon Zoje Resources is expected to generate 2.85 times less return on investment than China Minmetals. In addition to that, Zoje Resources is 1.14 times more volatile than China Minmetals Rare. It trades about 0.01 of its total potential returns per unit of risk. China Minmetals Rare is currently generating about 0.04 per unit of volatility. If you would invest 3,033 in China Minmetals Rare on September 1, 2024 and sell it today you would earn a total of 57.00 from holding China Minmetals Rare or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. China Minmetals Rare
Performance |
| Timeline |
| Zoje Resources Investment |
| China Minmetals Rare |
Zoje Resources and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and China Minmetals
The main advantage of trading using opposite Zoje Resources and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. New China Life | Zoje Resources vs. Ming Yang Smart | Zoje Resources vs. 159681 | Zoje Resources vs. 159005 |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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