Correlation Between Xiandai Investment and Jinhui Mining
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By analyzing existing cross correlation between Xiandai Investment Co and Jinhui Mining Co, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jinhui Mining.
Diversification Opportunities for Xiandai Investment and Jinhui Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiandai and Jinhui is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Jinhui Mining go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jinhui Mining
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 1.0 times more return on investment than Jinhui Mining. However, Xiandai Investment Co is 1.0 times less risky than Jinhui Mining. It trades about 0.07 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.06 per unit of risk. If you would invest 365.00 in Xiandai Investment Co on October 18, 2024 and sell it today you would earn a total of 54.00 from holding Xiandai Investment Co or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jinhui Mining Co
Performance |
| Timeline |
| Xiandai Investment |
| Jinhui Mining |
Xiandai Investment and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jinhui Mining
The main advantage of trading using opposite Xiandai Investment and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Guangzhou Restaurants Group | Xiandai Investment vs. Hangzhou Gisway Information | Xiandai Investment vs. Wonders Information | Xiandai Investment vs. Beijing Watertek Information |
| Jinhui Mining vs. Jiangsu Financial Leasing | Jinhui Mining vs. Nuode Investment Co | Jinhui Mining vs. Tieling Newcity Investment | Jinhui Mining 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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