Correlation Between Maoming Petro and Hainan Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Hainan Mining Co, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Hainan Mining.
Diversification Opportunities for Maoming Petro and Hainan Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Hainan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Hainan Mining go up and down completely randomly.
Pair Corralation between Maoming Petro and Hainan Mining
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 1.01 times more return on investment than Hainan Mining. However, Maoming Petro is 1.01 times more volatile than Hainan Mining Co. It trades about 0.05 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of risk. If you would invest 353.00 in Maoming Petro Chemical Shihua on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Maoming Petro Chemical Shihua or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Hainan Mining Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Hainan Mining |
Maoming Petro and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Hainan Mining
The main advantage of trading using opposite Maoming Petro and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Chongqing Brewery Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Glodon Software Co | Maoming Petro vs. Dhc Software Co |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |