Correlation Between Jiangsu Xinri and Minmetals Capital
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Minmetals Capital Co, you can compare the effects of market volatilities on Jiangsu Xinri 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 Jiangsu Xinri with a short position of Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Minmetals Capital.
Diversification Opportunities for Jiangsu Xinri and Minmetals Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Minmetals is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle 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 Jiangsu Xinri i.e., Jiangsu Xinri and Minmetals Capital go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Minmetals Capital
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 4.61 times less return on investment than Minmetals Capital. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.83 times less risky than Minmetals Capital. It trades about 0.09 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Minmetals Capital Co
Performance |
Timeline |
Jiangsu Xinri E |
Minmetals Capital |
Jiangsu Xinri and Minmetals Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Xinri and Minmetals Capital
The main advantage of trading using opposite Jiangsu Xinri and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri 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.Jiangsu Xinri vs. Muyuan Foodstuff Co | Jiangsu Xinri vs. Maoming Petro Chemical Shihua | Jiangsu Xinri vs. Beijing Sanyuan Foods | Jiangsu Xinri vs. North Chemical Industries |
Minmetals Capital vs. Industrial and Commercial | Minmetals Capital vs. Kweichow Moutai Co | Minmetals Capital vs. China Mobile Limited | Minmetals Capital vs. PetroChina Co Ltd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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