Correlation Between China Resources and China Minmetals
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By analyzing existing cross correlation between China Resources Microelectronics and China Minmetals Rare, you can compare the effects of market volatilities on China Resources 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 Resources with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and China Minmetals.
Diversification Opportunities for China Resources and China Minmetals
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Microelectroni 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 Resources 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 Resources Microelectronics 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 Resources i.e., China Resources and China Minmetals go up and down completely randomly.
Pair Corralation between China Resources and China Minmetals
Assuming the 90 days trading horizon China Resources Microelectronics is expected to generate 0.89 times more return on investment than China Minmetals. However, China Resources Microelectronics is 1.12 times less risky than China Minmetals. It trades about 0.04 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 4,949 in China Resources Microelectronics on September 4, 2024 and sell it today you would earn a total of 86.00 from holding China Resources Microelectronics or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Microelectroni vs. China Minmetals Rare
Performance |
| Timeline |
| China Resources Micr |
| China Minmetals Rare |
China Resources and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and China Minmetals
The main advantage of trading using opposite China Resources and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources 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 Resources vs. Shanghai Yaoji Playing | China Resources vs. Renxin New Material | China Resources vs. Advanced Technology Materials | China Resources vs. Orinko Advanced Plastics |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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