Correlation Between Shenzhen Centralcon and Hainan Mining
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Hainan Mining Co, you can compare the effects of market volatilities on Shenzhen Centralcon and Hainan Mining 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 Shenzhen Centralcon with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Hainan Mining.
Diversification Opportunities for Shenzhen Centralcon and Hainan Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Hainan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Hainan Mining go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Hainan Mining
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Hainan Mining. In addition to that, Shenzhen Centralcon is 1.45 times more volatile than Hainan Mining Co. It trades about -0.01 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of volatility. If you would invest 673.00 in Hainan Mining Co on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Hainan Mining Co or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Hainan Mining Co
Performance |
| Timeline |
| Shenzhen Centralcon |
| Hainan Mining |
Shenzhen Centralcon and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Hainan Mining
The main advantage of trading using opposite Shenzhen Centralcon and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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