Correlation Between Chahua Modern and Minmetals Capital
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By analyzing existing cross correlation between Chahua Modern Housewares and Minmetals Capital Co, you can compare the effects of market volatilities on Chahua Modern and Minmetals Capital 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 Chahua Modern with a short position of Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Minmetals Capital.
Diversification Opportunities for Chahua Modern and Minmetals Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Minmetals is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Chahua Modern i.e., Chahua Modern and Minmetals Capital go up and down completely randomly.
Pair Corralation between Chahua Modern and Minmetals Capital
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.68 times more return on investment than Minmetals Capital. However, Chahua Modern is 1.68 times more volatile than Minmetals Capital Co. It trades about -0.05 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about -0.21 per unit of risk. If you would invest 2,137 in Chahua Modern Housewares on September 13, 2024 and sell it today you would lose (123.00) from holding Chahua Modern Housewares or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Minmetals Capital Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Minmetals Capital |
Chahua Modern and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Minmetals Capital
The main advantage of trading using opposite Chahua Modern and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Chahua Modern vs. Agricultural Bank of | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. Bank of China | Chahua Modern vs. PetroChina Co Ltd |
| Minmetals Capital vs. Ming Yang Smart | Minmetals Capital vs. 159681 | Minmetals Capital vs. 159005 | Minmetals Capital vs. Loctek Ergonomic Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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