Correlation Between Shenzhen Centralcon and Jinhui Mining
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Jinhui Mining Co, you can compare the effects of market volatilities on Shenzhen Centralcon and Jinhui 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Jinhui Mining.
Diversification Opportunities for Shenzhen Centralcon and Jinhui Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jinhui is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Jinhui Mining go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Jinhui Mining
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Jinhui Mining. In addition to that, Shenzhen Centralcon is 2.77 times more volatile than Jinhui Mining Co. It trades about -0.06 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.08 per unit of volatility. If you would invest 1,189 in Jinhui Mining Co on October 30, 2024 and sell it today you would lose (48.00) from holding Jinhui Mining Co or give up 4.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Centralcon Investment vs. Jinhui Mining Co
Performance |
Timeline |
Shenzhen Centralcon |
Jinhui Mining |
Shenzhen Centralcon and Jinhui Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Centralcon and Jinhui Mining
The main advantage of trading using opposite Shenzhen Centralcon and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.Shenzhen Centralcon vs. Guilin Seamild Foods | Shenzhen Centralcon vs. Ningbo Tech Bank Co | Shenzhen Centralcon vs. Peoples Insurance of | Shenzhen Centralcon vs. Suzhou Weizhixiang Food |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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