Correlation Between China International and China Minmetals
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By analyzing existing cross correlation between China International Travel and China Minmetals Rare, you can compare the effects of market volatilities on China International 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 China International with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and China Minmetals.
Diversification Opportunities for China International and China Minmetals
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China International Travel 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 China International 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 China International Travel 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 China International i.e., China International and China Minmetals go up and down completely randomly.
Pair Corralation between China International and China Minmetals
Assuming the 90 days trading horizon China International Travel is expected to generate 0.74 times more return on investment than China Minmetals. However, China International Travel is 1.35 times less risky than China Minmetals. It trades about 0.08 of its potential returns per unit of risk. China Minmetals Rare is currently generating about -0.1 per unit of risk. If you would invest 7,021 in China International Travel on September 4, 2024 and sell it today you would earn a total of 241.00 from holding China International Travel or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Travel vs. China Minmetals Rare
Performance |
| Timeline |
| China International |
| China Minmetals Rare |
China International and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and China Minmetals
The main advantage of trading using opposite China International and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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.| China International vs. Bangyan Technology Co | China International vs. Iat Automobile Technology | China International vs. Uxi Unicomp Technology | China International vs. Tongyu Communication |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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