Correlation Between China Molybdenum and Gemdale Corp
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By analyzing existing cross correlation between China Molybdenum Co and Gemdale Corp, you can compare the effects of market volatilities on China Molybdenum and Gemdale Corp 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 Molybdenum with a short position of Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Gemdale Corp.
Diversification Opportunities for China Molybdenum and Gemdale Corp
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Gemdale is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp and China Molybdenum 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 Molybdenum Co are associated (or correlated) with Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of China Molybdenum i.e., China Molybdenum and Gemdale Corp go up and down completely randomly.
Pair Corralation between China Molybdenum and Gemdale Corp
Assuming the 90 days trading horizon China Molybdenum Co is expected to generate 0.8 times more return on investment than Gemdale Corp. However, China Molybdenum Co is 1.25 times less risky than Gemdale Corp. It trades about -0.03 of its potential returns per unit of risk. Gemdale Corp is currently generating about -0.21 per unit of risk. If you would invest 713.00 in China Molybdenum Co on October 17, 2024 and sell it today you would lose (8.00) from holding China Molybdenum Co or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Molybdenum Co vs. Gemdale Corp
Performance |
| Timeline |
| China Molybdenum |
| Gemdale Corp |
China Molybdenum and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Molybdenum and Gemdale Corp
The main advantage of trading using opposite China Molybdenum and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.| China Molybdenum vs. Uroica Mining Safety | China Molybdenum vs. Guangdong Silvere Sci | China Molybdenum vs. Jinlong Machinery Electronic | China Molybdenum vs. JCHX Mining Management |
| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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