Correlation Between China World and Jinduicheng Molybdenum
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By analyzing existing cross correlation between China World Trade and Jinduicheng Molybdenum Co, you can compare the effects of market volatilities on China World and Jinduicheng Molybdenum 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 China World with a short position of Jinduicheng Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Jinduicheng Molybdenum.
Diversification Opportunities for China World and Jinduicheng Molybdenum
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Jinduicheng is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade and Jinduicheng Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinduicheng Molybdenum and China World 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 China World Trade are associated (or correlated) with Jinduicheng Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinduicheng Molybdenum has no effect on the direction of China World i.e., China World and Jinduicheng Molybdenum go up and down completely randomly.
Pair Corralation between China World and Jinduicheng Molybdenum
Assuming the 90 days trading horizon China World Trade is expected to under-perform the Jinduicheng Molybdenum. But the stock apears to be less risky and, when comparing its historical volatility, China World Trade is 1.2 times less risky than Jinduicheng Molybdenum. The stock trades about -0.06 of its potential returns per unit of risk. The Jinduicheng Molybdenum Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,073 in Jinduicheng Molybdenum Co on September 1, 2024 and sell it today you would lose (22.00) from holding Jinduicheng Molybdenum Co or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
China World Trade vs. Jinduicheng Molybdenum Co
Performance |
| Timeline |
| China World Trade |
| Jinduicheng Molybdenum |
China World and Jinduicheng Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Jinduicheng Molybdenum
The main advantage of trading using opposite China World and Jinduicheng Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World position performs unexpectedly, Jinduicheng Molybdenum 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 Jinduicheng Molybdenum will offset losses from the drop in Jinduicheng Molybdenum's long position.| China World vs. BeiGene | China World vs. Kweichow Moutai Co | China World vs. Beijing Roborock Technology | China World vs. G bits Network Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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