Correlation Between China Molybdenum and Shanghai OPM
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By analyzing existing cross correlation between China Molybdenum Co and Shanghai OPM Biosciences, you can compare the effects of market volatilities on China Molybdenum and Shanghai OPM 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 OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Molybdenum and Shanghai OPM.
Diversification Opportunities for China Molybdenum and Shanghai OPM
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shanghai is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding China Molybdenum Co and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of China Molybdenum i.e., China Molybdenum and Shanghai OPM go up and down completely randomly.
Pair Corralation between China Molybdenum and Shanghai OPM
Assuming the 90 days trading horizon China Molybdenum Co is expected to generate 0.95 times more return on investment than Shanghai OPM. However, China Molybdenum Co is 1.05 times less risky than Shanghai OPM. It trades about 0.05 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.01 per unit of risk. If you would invest 677.00 in China Molybdenum Co on January 26, 2025 and sell it today you would earn a total of 36.00 from holding China Molybdenum Co or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
China Molybdenum Co vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| China Molybdenum |
| Shanghai OPM Biosciences |
China Molybdenum and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Molybdenum and Shanghai OPM
The main advantage of trading using opposite China Molybdenum and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Molybdenum position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| China Molybdenum vs. Zijin Mining Group | China Molybdenum vs. Wanhua Chemical Group | China Molybdenum vs. Baoshan Iron Steel | China Molybdenum vs. Shandong Gold Mining |
| Shanghai OPM vs. PetroChina Co Ltd | Shanghai OPM vs. China Mobile Limited | Shanghai OPM vs. CNOOC Limited | Shanghai OPM vs. Ping An Insurance |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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