Correlation Between Industrial Securities and China Minmetals
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By analyzing existing cross correlation between Industrial Securities Co and China Minmetals Rare, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and China Minmetals.
Diversification Opportunities for Industrial Securities and China Minmetals
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities Co 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 Industrial Securities 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 Industrial Securities Co 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 Industrial Securities i.e., Industrial Securities and China Minmetals go up and down completely randomly.
Pair Corralation between Industrial Securities and China Minmetals
Assuming the 90 days trading horizon Industrial Securities Co is expected to under-perform the China Minmetals. But the stock apears to be less risky and, when comparing its historical volatility, Industrial Securities Co is 1.6 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,927 in China Minmetals Rare on August 31, 2024 and sell it today you would earn a total of 113.00 from holding China Minmetals Rare or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Securities Co vs. China Minmetals Rare
Performance |
| Timeline |
| Industrial Securities |
| China Minmetals Rare |
Industrial Securities and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and China Minmetals
The main advantage of trading using opposite Industrial Securities and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. Agricultural Bank of | Industrial Securities vs. Hangzhou Pinming Software | Industrial Securities vs. Shandong Mining Machinery | Industrial Securities vs. GuoChuang Software Co |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co | China Minmetals vs. Hoshine Silicon Ind |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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