Correlation Between Minmetals Capital and Huaibei Mining
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By analyzing existing cross correlation between Minmetals Capital Co and Huaibei Mining Holdings, you can compare the effects of market volatilities on Minmetals Capital and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Huaibei Mining.
Diversification Opportunities for Minmetals Capital and Huaibei Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minmetals and Huaibei is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Huaibei Mining go up and down completely randomly.
Pair Corralation between Minmetals Capital and Huaibei Mining
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 1.18 times more return on investment than Huaibei Mining. However, Minmetals Capital is 1.18 times more volatile than Huaibei Mining Holdings. It trades about 0.04 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.03 per unit of risk. If you would invest 568.00 in Minmetals Capital Co on August 31, 2024 and sell it today you would earn a total of 151.00 from holding Minmetals Capital Co or generate 26.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Minmetals Capital |
| Huaibei Mining Holdings |
Minmetals Capital and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Huaibei Mining
The main advantage of trading using opposite Minmetals Capital and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Minmetals Capital vs. Agricultural Bank of | Minmetals Capital vs. Hangzhou Pinming Software | Minmetals Capital vs. Shandong Mining Machinery | Minmetals Capital vs. GuoChuang Software Co |
| Huaibei Mining vs. Chongqing Road Bridge | Huaibei Mining vs. Heilongjiang Transport Development | Huaibei Mining vs. Beijing Kaiwen Education | Huaibei Mining vs. Fujian Longzhou Transportation |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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