Correlation Between Minmetals Capital and New China
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By analyzing existing cross correlation between Minmetals Capital Co and New China Life, you can compare the effects of market volatilities on Minmetals Capital and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and New China.
Diversification Opportunities for Minmetals Capital and New China
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Minmetals and New is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and New China go up and down completely randomly.
Pair Corralation between Minmetals Capital and New China
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 1.21 times more return on investment than New China. However, Minmetals Capital is 1.21 times more volatile than New China Life. It trades about 0.08 of its potential returns per unit of risk. New China Life is currently generating about 0.09 per unit of risk. If you would invest 499.00 in Minmetals Capital Co on August 25, 2024 and sell it today you would earn a total of 215.00 from holding Minmetals Capital Co or generate 43.09% 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. New China Life
Performance |
| Timeline |
| Minmetals Capital |
| New China Life |
Minmetals Capital and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and New China
The main advantage of trading using opposite Minmetals Capital and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Minmetals Capital vs. New China Life | Minmetals Capital vs. Ming Yang Smart | Minmetals Capital vs. 159681 | Minmetals Capital vs. 159005 |
| New China vs. Chongqing Changan Automobile | New China vs. Hubei Dinglong Chemical | New China vs. Lianhe Chemical Technology | New China vs. Sinomach Automobile 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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