Correlation Between Shanghai Jinfeng and China Molybdenum
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and China Molybdenum Co, you can compare the effects of market volatilities on Shanghai Jinfeng and China Molybdenum 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 Shanghai Jinfeng with a short position of China Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and China Molybdenum.
Diversification Opportunities for Shanghai Jinfeng and China Molybdenum
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and China is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with China Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and China Molybdenum go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and China Molybdenum
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 1.79 times more return on investment than China Molybdenum. However, Shanghai Jinfeng is 1.79 times more volatile than China Molybdenum Co. It trades about 0.25 of its potential returns per unit of risk. China Molybdenum Co is currently generating about -0.17 per unit of risk. If you would invest 559.00 in Shanghai Jinfeng Wine on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Shanghai Jinfeng Wine or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. China Molybdenum Co
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| China Molybdenum |
Shanghai Jinfeng and China Molybdenum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and China Molybdenum
The main advantage of trading using opposite Shanghai Jinfeng and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, China Molybdenum 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 Molybdenum will offset losses from the drop in China Molybdenum's long position.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| China Molybdenum vs. Postal Savings Bank | China Molybdenum vs. Shenzhen Bioeasy Biotechnology | China Molybdenum vs. Industrial Bank Co | China Molybdenum vs. Shanghai Rendu Biotechnology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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