Correlation Between Minmetals Capital and Zhejiang Kingland
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By analyzing existing cross correlation between Minmetals Capital Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Minmetals Capital and Zhejiang Kingland 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 Minmetals Capital with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Zhejiang Kingland.
Diversification Opportunities for Minmetals Capital and Zhejiang Kingland
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Minmetals and Zhejiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Minmetals Capital 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 Minmetals Capital Co are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Minmetals Capital and Zhejiang Kingland
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 1.87 times more return on investment than Zhejiang Kingland. However, Minmetals Capital is 1.87 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.24 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.16 per unit of risk. If you would invest 399.00 in Minmetals Capital Co on September 10, 2024 and sell it today you would earn a total of 334.00 from holding Minmetals Capital Co or generate 83.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Minmetals Capital Co vs. Zhejiang Kingland Pipeline
Performance |
Timeline |
Minmetals Capital |
Zhejiang Kingland |
Minmetals Capital and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Minmetals Capital and Zhejiang Kingland
The main advantage of trading using opposite Minmetals Capital and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.Minmetals Capital vs. Jiujiang Shanshui Technology | Minmetals Capital vs. Northking Information Technology | Minmetals Capital vs. FSPG Hi Tech Co | Minmetals Capital vs. Holitech Technology Co |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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