Correlation Between Guangdong Jingyi and China Minmetals
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By analyzing existing cross correlation between Guangdong Jingyi Metal and China Minmetals Rare, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and China Minmetals.
Diversification Opportunities for Guangdong Jingyi and China Minmetals
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and China Minmetals go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and China Minmetals
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the China Minmetals. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jingyi Metal is 1.35 times less risky than China Minmetals. The stock trades about -0.11 of its potential returns per unit of risk. The China Minmetals Rare is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,857 in China Minmetals Rare on December 1, 2024 and sell it today you would earn a total of 73.00 from holding China Minmetals Rare or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. China Minmetals Rare
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| China Minmetals Rare |
Guangdong Jingyi and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and China Minmetals
The main advantage of trading using opposite Guangdong Jingyi and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Southern PublishingMedia Co | Guangdong Jingyi vs. Qtone Education Group | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Jiangsu Yanghe Brewery |
| China Minmetals vs. Kingclean Electric Co | China Minmetals vs. Goldlok Toys Holdings | China Minmetals vs. Zhejiang Daily Media | China Minmetals vs. Shenzhen Zqgame |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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