Correlation Between Soyea Technology and Huaibei Mining
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By analyzing existing cross correlation between Soyea Technology Co and Huaibei Mining Holdings, you can compare the effects of market volatilities on Soyea Technology and Huaibei 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 Soyea Technology with a short position of Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Huaibei Mining.
Diversification Opportunities for Soyea Technology and Huaibei Mining
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soyea and Huaibei is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Soyea Technology i.e., Soyea Technology and Huaibei Mining go up and down completely randomly.
Pair Corralation between Soyea Technology and Huaibei Mining
Assuming the 90 days trading horizon Soyea Technology Co is expected to generate 1.96 times more return on investment than Huaibei Mining. However, Soyea Technology is 1.96 times more volatile than Huaibei Mining Holdings. It trades about 0.37 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.21 per unit of risk. If you would invest 496.00 in Soyea Technology Co on September 18, 2024 and sell it today you would earn a total of 122.00 from holding Soyea Technology Co or generate 24.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Soyea Technology Co vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Soyea Technology |
| Huaibei Mining Holdings |
Soyea Technology and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Huaibei Mining
The main advantage of trading using opposite Soyea Technology and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Huaibei 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Soyea Technology vs. China Life Insurance | Soyea Technology vs. Cinda Securities Co | Soyea Technology vs. Piotech Inc A | Soyea Technology vs. Dongxing Sec Co |
| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Wanhua Chemical Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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