Correlation Between Maoming Petro and Jinhui Mining
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Jinhui Mining Co, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Jinhui Mining.
Diversification Opportunities for Maoming Petro and Jinhui Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Jinhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui 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 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 Maoming Petro i.e., Maoming Petro and Jinhui Mining go up and down completely randomly.
Pair Corralation between Maoming Petro and Jinhui Mining
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 1.5 times more return on investment than Jinhui Mining. However, Maoming Petro is 1.5 times more volatile than Jinhui Mining Co. It trades about 0.21 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.09 per unit of risk. If you would invest 365.00 in Maoming Petro Chemical Shihua on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Maoming Petro Chemical Shihua or generate 13.15% 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. Jinhui Mining Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Jinhui Mining |
Maoming Petro and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Jinhui Mining
The main advantage of trading using opposite Maoming Petro and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Jinhui Mining Co | Maoming Petro vs. Bomesc Offshore Engineering | Maoming Petro vs. Metro Investment Development | Maoming Petro vs. Chenzhou Jingui Silver |
| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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