Correlation Between Minmetals Capital and Shenzhen Fortune
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By analyzing existing cross correlation between Minmetals Capital Co and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Minmetals Capital and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Shenzhen Fortune.
Diversification Opportunities for Minmetals Capital and Shenzhen Fortune
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Minmetals and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Minmetals Capital and Shenzhen Fortune
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 0.63 times more return on investment than Shenzhen Fortune. However, Minmetals Capital Co is 1.59 times less risky than Shenzhen Fortune. It trades about -0.43 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about -0.31 per unit of risk. If you would invest 705.00 in Minmetals Capital Co on October 14, 2024 and sell it today you would lose (117.00) from holding Minmetals Capital Co or give up 16.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Minmetals Capital |
| Shenzhen Fortune Trend |
Minmetals Capital and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Shenzhen Fortune
The main advantage of trading using opposite Minmetals Capital and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Minmetals Capital vs. Agricultural Bank of | Minmetals Capital vs. Industrial and Commercial | Minmetals Capital vs. Bank of China | Minmetals Capital vs. PetroChina Co Ltd |
| Shenzhen Fortune vs. Zhonghong Pulin Medical | Shenzhen Fortune vs. Winner Medical Co | Shenzhen Fortune vs. Industrial Bank Co | Shenzhen Fortune vs. Nanjing Vishee Medical |
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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