Correlation Between Fujian Nanwang and China Minmetals
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By analyzing existing cross correlation between Fujian Nanwang Environment and China Minmetals Rare, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and China Minmetals.
Diversification Opportunities for Fujian Nanwang and China Minmetals
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and China is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and China Minmetals go up and down completely randomly.
Pair Corralation between Fujian Nanwang and China Minmetals
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the China Minmetals. In addition to that, Fujian Nanwang is 1.07 times more volatile than China Minmetals Rare. It trades about -0.04 of its total potential returns per unit of risk. China Minmetals Rare is currently generating about -0.02 per unit of volatility. If you would invest 4,081 in China Minmetals Rare on October 21, 2024 and sell it today you would lose (1,140) from holding China Minmetals Rare or give up 27.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.16% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. China Minmetals Rare
Performance |
| Timeline |
| Fujian Nanwang Envir |
| China Minmetals Rare |
Fujian Nanwang and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and China Minmetals
The main advantage of trading using opposite Fujian Nanwang and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Jilin Chemical Fibre | Fujian Nanwang vs. Hunan TV Broadcast | Fujian Nanwang vs. Road Environment Technology | Fujian Nanwang vs. Shenyang Chemical Industry |
| China Minmetals vs. Malion New Materials | China Minmetals vs. Suzhou Xingye Material | China Minmetals vs. Advanced Technology Materials | China Minmetals vs. Healthcare Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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