Correlation Between Minmetals Capital and Chahua Modern
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By analyzing existing cross correlation between Minmetals Capital Co and Chahua Modern Housewares, you can compare the effects of market volatilities on Minmetals Capital and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Chahua Modern.
Diversification Opportunities for Minmetals Capital and Chahua Modern
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Minmetals and Chahua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Chahua Modern go up and down completely randomly.
Pair Corralation between Minmetals Capital and Chahua Modern
Assuming the 90 days trading horizon Minmetals Capital Co is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Minmetals Capital Co is 1.68 times less risky than Chahua Modern. The stock trades about -0.21 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,137 in Chahua Modern Housewares on September 13, 2024 and sell it today you would lose (123.00) from holding Chahua Modern Housewares or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. Chahua Modern Housewares
Performance |
| Timeline |
| Minmetals Capital |
| Chahua Modern Housewares |
Minmetals Capital and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Chahua Modern
The main advantage of trading using opposite Minmetals Capital and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Minmetals Capital vs. Ming Yang Smart | Minmetals Capital vs. 159681 | Minmetals Capital vs. 159005 | Minmetals Capital vs. Loctek Ergonomic Technology |
| Chahua Modern vs. Agricultural Bank of | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. Bank of China | Chahua Modern vs. PetroChina Co Ltd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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