Correlation Between Minmetals Capital and Jiangsu Xinri
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By analyzing existing cross correlation between Minmetals Capital Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Minmetals Capital and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and Jiangsu Xinri.
Diversification Opportunities for Minmetals Capital and Jiangsu Xinri
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Minmetals and Jiangsu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Minmetals Capital i.e., Minmetals Capital and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Minmetals Capital and Jiangsu Xinri
Assuming the 90 days trading horizon Minmetals Capital Co is expected to under-perform the Jiangsu Xinri. In addition to that, Minmetals Capital is 1.2 times more volatile than Jiangsu Xinri E Vehicle. It trades about -0.24 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.11 per unit of volatility. If you would invest 1,085 in Jiangsu Xinri E Vehicle on September 9, 2024 and sell it today you would earn a total of 50.00 from holding Jiangsu Xinri E Vehicle or generate 4.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Minmetals Capital Co vs. Jiangsu Xinri E Vehicle
Performance |
Timeline |
Minmetals Capital |
Jiangsu Xinri E |
Minmetals Capital and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Minmetals Capital and Jiangsu Xinri
The main advantage of trading using opposite Minmetals Capital and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.Minmetals Capital vs. Xiamen Bank Co | Minmetals Capital vs. Heilongjiang Transport Development | Minmetals Capital vs. Zhongshan Public Utilities | Minmetals Capital vs. HeNan Splendor Science |
Jiangsu Xinri vs. Jiangsu Jinling Sports | Jiangsu Xinri vs. Everdisplay Optronics Shanghai | Jiangsu Xinri vs. Hainan Airlines Co | Jiangsu Xinri vs. China Express Airlines |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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