Correlation Between Minmetals Capital and Sobute New
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By analyzing existing cross correlation between Minmetals Capital Co and Sobute New Materials, you can compare the effects of market volatilities on Minmetals Capital and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Sobute New.
Diversification Opportunities for Minmetals Capital and Sobute New
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Minmetals and Sobute is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Sobute New go up and down completely randomly.
Pair Corralation between Minmetals Capital and Sobute New
Assuming the 90 days trading horizon Minmetals Capital Co is expected to under-perform the Sobute New. In addition to that, Minmetals Capital is 1.38 times more volatile than Sobute New Materials. It trades about -0.16 of its total potential returns per unit of risk. Sobute New Materials is currently generating about 0.08 per unit of volatility. If you would invest 835.00 in Sobute New Materials on September 14, 2024 and sell it today you would earn a total of 24.00 from holding Sobute New Materials or generate 2.87% 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. Sobute New Materials
Performance |
| Timeline |
| Minmetals Capital |
| Sobute New Materials |
Minmetals Capital and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Sobute New
The main advantage of trading using opposite Minmetals Capital and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.The idea behind Minmetals Capital Co and Sobute New Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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