Correlation Between Liaoning Chengda and Minmetals Capital
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By analyzing existing cross correlation between Liaoning Chengda Biotechnology and Minmetals Capital Co, you can compare the effects of market volatilities on Liaoning Chengda 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 Liaoning Chengda with a short position of Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Chengda and Minmetals Capital.
Diversification Opportunities for Liaoning Chengda and Minmetals Capital
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liaoning and Minmetals is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Chengda Biotechnology and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital and Liaoning Chengda 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 Liaoning Chengda Biotechnology 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 Liaoning Chengda i.e., Liaoning Chengda and Minmetals Capital go up and down completely randomly.
Pair Corralation between Liaoning Chengda and Minmetals Capital
Assuming the 90 days trading horizon Liaoning Chengda Biotechnology is expected to generate 0.49 times more return on investment than Minmetals Capital. However, Liaoning Chengda Biotechnology is 2.05 times less risky than Minmetals Capital. It trades about -0.53 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about -0.47 per unit of risk. If you would invest 2,785 in Liaoning Chengda Biotechnology on October 7, 2024 and sell it today you would lose (292.00) from holding Liaoning Chengda Biotechnology or give up 10.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Chengda Biotechnology vs. Minmetals Capital Co
Performance |
| Timeline |
| Liaoning Chengda Bio |
| Minmetals Capital |
Liaoning Chengda and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Chengda and Minmetals Capital
The main advantage of trading using opposite Liaoning Chengda and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Chengda 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.| Liaoning Chengda vs. Nanjing Putian Telecommunications | Liaoning Chengda vs. Tianjin Realty Development | Liaoning Chengda vs. Zhongtong Guomai Communication | Liaoning Chengda vs. Gansu Jiu Steel |
| Minmetals Capital vs. Gansu Jiu Steel | Minmetals Capital vs. Aba Chemicals Corp | Minmetals Capital vs. Yes Optoelectronics Co | Minmetals Capital vs. Queclink Wireless Solutions |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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