Correlation Between Aba Chemicals and Minmetals Capital
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By analyzing existing cross correlation between Aba Chemicals Corp and Minmetals Capital Co, you can compare the effects of market volatilities on Aba Chemicals and Minmetals Capital 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 Aba Chemicals with a short position of Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Minmetals Capital.
Diversification Opportunities for Aba Chemicals and Minmetals Capital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Minmetals is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Minmetals Capital go up and down completely randomly.
Pair Corralation between Aba Chemicals and Minmetals Capital
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Minmetals Capital. In addition to that, Aba Chemicals is 1.2 times more volatile than Minmetals Capital Co. It trades about -0.08 of its total potential returns per unit of risk. Minmetals Capital Co is currently generating about -0.04 per unit of volatility. If you would invest 670.00 in Minmetals Capital Co on October 24, 2024 and sell it today you would lose (67.00) from holding Minmetals Capital Co or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Minmetals Capital Co
Performance |
| Timeline |
| Aba Chemicals Corp |
| Minmetals Capital |
Aba Chemicals and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Minmetals Capital
The main advantage of trading using opposite Aba Chemicals and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Aba Chemicals vs. Jiangsu Phoenix Publishing | Aba Chemicals vs. Xiamen Goldenhome Co | Aba Chemicals vs. Ningbo Homelink Eco iTech | Aba Chemicals vs. Nanxing Furniture Machinery |
| Minmetals Capital vs. TongFu Microelectronics Co | Minmetals Capital vs. Xinya Electronic Co | Minmetals Capital vs. Guangzhou Restaurants Group | Minmetals Capital vs. Leyard Optoelectronic |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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