Correlation Between China Securities and Jinhui Mining
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By analyzing existing cross correlation between China Securities 800 and Jinhui Mining Co, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Jinhui Mining.
Diversification Opportunities for China Securities and Jinhui Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jinhui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Jinhui Mining go up and down completely randomly.
Pair Corralation between China Securities and Jinhui Mining
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Jinhui Mining. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 1.87 times less risky than Jinhui Mining. The index trades about 0.0 of its potential returns per unit of risk. The Jinhui Mining Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,286 in Jinhui Mining Co on August 25, 2024 and sell it today you would lose (123.00) from holding Jinhui Mining Co or give up 9.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Jinhui Mining Co
Performance |
| Timeline |
China Securities and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Jinhui Mining Co
Pair trading matchups for Jinhui Mining
Pair Trading with China Securities and Jinhui Mining
The main advantage of trading using opposite China Securities and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Yuan Longping High tech | China Securities vs. Saurer Intelligent Technology | China Securities vs. Fujian Rongji Software | China Securities vs. Jinhui Liquor Co |
| Jinhui Mining vs. Changchun UP Optotech | Jinhui Mining vs. Cultural Investment Holdings | Jinhui Mining vs. Harbin Hatou Investment | Jinhui Mining vs. Kuangda Technology Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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