Correlation Between Changjiang Jinggong and China Minmetals
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By analyzing existing cross correlation between Changjiang Jinggong Steel and China Minmetals Rare, you can compare the effects of market volatilities on Changjiang Jinggong and China Minmetals 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 Changjiang Jinggong with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and China Minmetals.
Diversification Opportunities for Changjiang Jinggong and China Minmetals
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changjiang and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare and Changjiang Jinggong 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 Changjiang Jinggong Steel are associated (or correlated) with China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and China Minmetals go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and China Minmetals
Assuming the 90 days trading horizon Changjiang Jinggong is expected to generate 1.82 times less return on investment than China Minmetals. But when comparing it to its historical volatility, Changjiang Jinggong Steel is 1.37 times less risky than China Minmetals. It trades about 0.04 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,472 in China Minmetals Rare on October 13, 2024 and sell it today you would earn a total of 353.00 from holding China Minmetals Rare or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. China Minmetals Rare
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| China Minmetals Rare |
Changjiang Jinggong and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and China Minmetals
The main advantage of trading using opposite Changjiang Jinggong and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Changjiang Jinggong vs. Hunan Investment Group | Changjiang Jinggong vs. Allwin Telecommunication Co | Changjiang Jinggong vs. Jointo Energy Investment | Changjiang Jinggong vs. Vanfund Urban Investment |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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