Correlation Between China Molybdenum and Shanghai Jinfeng
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By analyzing existing cross correlation between China Molybdenum Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on China Molybdenum and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Shanghai Jinfeng.
Diversification Opportunities for China Molybdenum and Shanghai Jinfeng
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Shanghai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of China Molybdenum i.e., China Molybdenum and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between China Molybdenum and Shanghai Jinfeng
Assuming the 90 days trading horizon China Molybdenum Co is expected to generate 0.95 times more return on investment than Shanghai Jinfeng. However, China Molybdenum Co is 1.05 times less risky than Shanghai Jinfeng. It trades about 0.08 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.0 per unit of risk. If you would invest 486.00 in China Molybdenum Co on September 4, 2024 and sell it today you would earn a total of 262.00 from holding China Molybdenum Co or generate 53.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Molybdenum Co vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| China Molybdenum |
| Shanghai Jinfeng Wine |
China Molybdenum and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Molybdenum and Shanghai Jinfeng
The main advantage of trading using opposite China Molybdenum and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| China Molybdenum vs. Shanghai Jinfeng Wine | China Molybdenum vs. Lander Sports Development | China Molybdenum vs. Sportsoul Co Ltd | China Molybdenum vs. Jiangsu Jinling Sports |
| Shanghai Jinfeng vs. Industrial and Commercial | Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. China Construction Bank | Shanghai Jinfeng vs. Bank of China |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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