Correlation Between China Securities and China Molybdenum
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By analyzing existing cross correlation between China Securities 800 and China Molybdenum Co, you can compare the effects of market volatilities on China Securities and China Molybdenum 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 China Securities with a short position of China Molybdenum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and China Molybdenum.
Diversification Opportunities for China Securities and China Molybdenum
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and China is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and China Molybdenum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Molybdenum and China Securities 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 China Securities 800 are associated (or correlated) with China Molybdenum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Molybdenum has no effect on the direction of China Securities i.e., China Securities and China Molybdenum go up and down completely randomly.
Pair Corralation between China Securities and China Molybdenum
Assuming the 90 days trading horizon China Securities is expected to generate 12.34 times less return on investment than China Molybdenum. But when comparing it to its historical volatility, China Securities 800 is 2.0 times less risky than China Molybdenum. It trades about 0.01 of its potential returns per unit of risk. China Molybdenum Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 448.00 in China Molybdenum Co on September 20, 2024 and sell it today you would earn a total of 251.00 from holding China Molybdenum Co or generate 56.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Securities 800 vs. China Molybdenum Co
Performance |
Timeline |
China Securities and China Molybdenum Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
China Molybdenum Co
Pair trading matchups for China Molybdenum
Pair Trading with China Securities and China Molybdenum
The main advantage of trading using opposite China Securities and China Molybdenum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, China Molybdenum 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 China Molybdenum will offset losses from the drop in China Molybdenum's long position.China Securities vs. Unigroup Guoxin Microelectronics | China Securities vs. Northern United Publishing | China Securities vs. Shandong Publishing Media | China Securities vs. Dongguan Tarry Electronics |
China Molybdenum vs. Easyhome New Retail | China Molybdenum vs. Shenzhen Centralcon Investment | China Molybdenum vs. Chengdu Xingrong Investment | China Molybdenum vs. Xiandai Investment Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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