Correlation Between Baoshan Iron and China Minmetals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and China Minmetals Rare, you can compare the effects of market volatilities on Baoshan Iron 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 Baoshan Iron with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and China Minmetals.
Diversification Opportunities for Baoshan Iron and China Minmetals
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baoshan and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel 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 Baoshan Iron 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 Baoshan Iron Steel 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 Baoshan Iron i.e., Baoshan Iron and China Minmetals go up and down completely randomly.
Pair Corralation between Baoshan Iron and China Minmetals
Assuming the 90 days trading horizon Baoshan Iron is expected to generate 2.98 times less return on investment than China Minmetals. But when comparing it to its historical volatility, Baoshan Iron Steel is 1.43 times less risky than China Minmetals. It trades about 0.09 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,188 in China Minmetals Rare on September 2, 2024 and sell it today you would earn a total of 902.00 from holding China Minmetals Rare or generate 41.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. China Minmetals Rare
Performance |
| Timeline |
| Baoshan Iron Steel |
| China Minmetals Rare |
Baoshan Iron and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and China Minmetals
The main advantage of trading using opposite Baoshan Iron and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron 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.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |