Correlation Between Minmetals Capital and Liaoning Chengda
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By analyzing existing cross correlation between Minmetals Capital Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Minmetals Capital and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Liaoning Chengda.
Diversification Opportunities for Minmetals Capital and Liaoning Chengda
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Minmetals and Liaoning is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Minmetals Capital and Liaoning Chengda
Assuming the 90 days trading horizon Minmetals Capital Co is expected to under-perform the Liaoning Chengda. In addition to that, Minmetals Capital is 1.84 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.2 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.26 per unit of volatility. If you would invest 2,634 in Liaoning Chengda Biotechnology on October 22, 2024 and sell it today you would lose (159.00) from holding Liaoning Chengda Biotechnology or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Minmetals Capital Co vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Minmetals Capital |
| Liaoning Chengda Bio |
Minmetals Capital and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and Liaoning Chengda
The main advantage of trading using opposite Minmetals Capital and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Minmetals Capital vs. Nanjing OLO Home | Minmetals Capital vs. HanS Laser Tech | Minmetals Capital vs. Tianshui Huatian Technology | Minmetals Capital vs. Nanxing Furniture Machinery |
| Liaoning Chengda vs. Maccura Biotechnology Co | Liaoning Chengda vs. Bus Online Co | Liaoning Chengda vs. CITIC Metal Co | Liaoning Chengda vs. Aba Chemicals Corp |
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