Correlation Between Pengxin International and Minmetals Capital
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By analyzing existing cross correlation between Pengxin International Mining and Minmetals Capital Co, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Minmetals Capital.
Diversification Opportunities for Pengxin International and Minmetals Capital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pengxin and Minmetals is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital and Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and Minmetals Capital go up and down completely randomly.
Pair Corralation between Pengxin International and Minmetals Capital
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.26 times less return on investment than Minmetals Capital. But when comparing it to its historical volatility, Pengxin International Mining is 1.26 times less risky than Minmetals Capital. It trades about 0.24 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. 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 |
Pengxin International Mining vs. Minmetals Capital Co
Performance |
Timeline |
Pengxin International |
Minmetals Capital |
Pengxin International and Minmetals Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Minmetals Capital
The main advantage of trading using opposite Pengxin International and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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