Correlation Between Minmetals Capital and Yuan Longping
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By analyzing existing cross correlation between Minmetals Capital Co and Yuan Longping High tech, you can compare the effects of market volatilities on Minmetals Capital and Yuan Longping 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 Minmetals Capital with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Yuan Longping.
Diversification Opportunities for Minmetals Capital and Yuan Longping
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Minmetals and Yuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and Minmetals Capital 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 Minmetals Capital Co are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Yuan Longping go up and down completely randomly.
Pair Corralation between Minmetals Capital and Yuan Longping
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 1.47 times more return on investment than Yuan Longping. However, Minmetals Capital is 1.47 times more volatile than Yuan Longping High tech. It trades about 0.07 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 482.00 in Minmetals Capital Co on September 4, 2024 and sell it today you would earn a total of 244.00 from holding Minmetals Capital Co or generate 50.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. Yuan Longping High tech
Performance |
| Timeline |
| Minmetals Capital |
| Yuan Longping High |
Minmetals Capital and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Yuan Longping
The main advantage of trading using opposite Minmetals Capital and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Minmetals Capital vs. Ming Yang Smart | Minmetals Capital vs. 159681 | Minmetals Capital vs. 159005 | Minmetals Capital vs. Loctek Ergonomic Technology |
| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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