Correlation Between Western Metal and China Minmetals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and China Minmetals Rare, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and China Minmetals.
Diversification Opportunities for Western Metal and China Minmetals
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal 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 Western Metal 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 Western Metal 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 Western Metal i.e., Western Metal and China Minmetals go up and down completely randomly.
Pair Corralation between Western Metal and China Minmetals
Assuming the 90 days trading horizon Western Metal is expected to generate 1.76 times less return on investment than China Minmetals. But when comparing it to its historical volatility, Western Metal Materials is 1.1 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,927 in China Minmetals Rare on August 31, 2024 and sell it today you would earn a total of 113.00 from holding China Minmetals Rare or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. China Minmetals Rare
Performance |
| Timeline |
| Western Metal Materials |
| China Minmetals Rare |
Western Metal and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and China Minmetals
The main advantage of trading using opposite Western Metal and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Zijin Mining Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Rongsheng Petrochemical Co | Western Metal vs. Hoshine Silicon Ind |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co | China Minmetals vs. Hoshine Silicon Ind |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |