Correlation Between Chengdu B and China Minmetals
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By analyzing existing cross correlation between Chengdu B ray Media and China Minmetals Rare, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and China Minmetals.
Diversification Opportunities for Chengdu B and China Minmetals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and China is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media 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 Chengdu B 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 Chengdu B ray Media 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 Chengdu B i.e., Chengdu B and China Minmetals go up and down completely randomly.
Pair Corralation between Chengdu B and China Minmetals
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 2.79 times more return on investment than China Minmetals. However, Chengdu B is 2.79 times more volatile than China Minmetals Rare. It trades about -0.03 of its potential returns per unit of risk. China Minmetals Rare is currently generating about -0.16 per unit of risk. If you would invest 497.00 in Chengdu B ray Media on October 30, 2024 and sell it today you would lose (48.00) from holding Chengdu B ray Media or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. China Minmetals Rare
Performance |
| Timeline |
| Chengdu B ray |
| China Minmetals Rare |
Chengdu B and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and China Minmetals
The main advantage of trading using opposite Chengdu B and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Silkroad Visual Technology | Chengdu B vs. Guangzhou Tinci Materials | Chengdu B vs. Swancor Advanced Materials | Chengdu B vs. Shanghai Broadband Technology |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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