Correlation Between Hubei Jumpcan and China Minmetals
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By analyzing existing cross correlation between Hubei Jumpcan Pharmaceutical and China Minmetals Rare, you can compare the effects of market volatilities on Hubei Jumpcan 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 Hubei Jumpcan with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Jumpcan and China Minmetals.
Diversification Opportunities for Hubei Jumpcan and China Minmetals
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hubei and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Jumpcan Pharmaceutical 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 Hubei Jumpcan 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 Hubei Jumpcan Pharmaceutical 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 Hubei Jumpcan i.e., Hubei Jumpcan and China Minmetals go up and down completely randomly.
Pair Corralation between Hubei Jumpcan and China Minmetals
Assuming the 90 days trading horizon Hubei Jumpcan Pharmaceutical is expected to under-perform the China Minmetals. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Jumpcan Pharmaceutical is 1.1 times less risky than China Minmetals. The stock trades about -0.03 of its potential returns per unit of risk. The China Minmetals Rare is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,747 in China Minmetals Rare on November 4, 2024 and sell it today you would earn a total of 12.00 from holding China Minmetals Rare or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Jumpcan Pharmaceutical vs. China Minmetals Rare
Performance |
| Timeline |
| Hubei Jumpcan Pharma |
| China Minmetals Rare |
Hubei Jumpcan and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Jumpcan and China Minmetals
The main advantage of trading using opposite Hubei Jumpcan and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Jumpcan 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.| Hubei Jumpcan vs. Bingo Software Co | Hubei Jumpcan vs. Servyou Software Group | Hubei Jumpcan vs. Fujian Boss Software | Hubei Jumpcan vs. Qiaoyin Environmental Tech |
| China Minmetals vs. Hongrun Construction Group | China Minmetals vs. Guangzhou Seagull Kitchen | China Minmetals vs. Chahua Modern Housewares | China Minmetals vs. Guangzhou KDT Machinery |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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