Correlation Between Minmetals Capital and Pengxin International
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By analyzing existing cross correlation between Minmetals Capital Co and Pengxin International Mining, you can compare the effects of market volatilities on Minmetals Capital and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Pengxin International.
Diversification Opportunities for Minmetals Capital and Pengxin International
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Minmetals and Pengxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Pengxin International go up and down completely randomly.
Pair Corralation between Minmetals Capital and Pengxin International
Assuming the 90 days trading horizon Minmetals Capital Co is expected to generate 1.27 times more return on investment than Pengxin International. However, Minmetals Capital is 1.27 times more volatile than Pengxin International Mining. It trades about 0.23 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.22 per unit of risk. If you would invest 402.00 in Minmetals Capital Co on September 6, 2024 and sell it today you would earn a total of 318.00 from holding Minmetals Capital Co or generate 79.1% 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. Pengxin International Mining
Performance |
Timeline |
Minmetals Capital |
Pengxin International |
Minmetals Capital and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Minmetals Capital and Pengxin International
The main advantage of trading using opposite Minmetals Capital and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.Minmetals Capital vs. Meinian Onehealth Healthcare | Minmetals Capital vs. China Asset Management | Minmetals Capital vs. Impulse Qingdao Health | Minmetals Capital vs. AVIC Fund Management |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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