Correlation Between Xiangtan Electrochemical and Jinhui Mining
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Jinhui Mining Co, you can compare the effects of market volatilities on Xiangtan Electrochemical 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 Xiangtan Electrochemical with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Jinhui Mining.
Diversification Opportunities for Xiangtan Electrochemical and Jinhui Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangtan and Jinhui is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific 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 Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Jinhui Mining go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Jinhui Mining
Assuming the 90 days trading horizon Xiangtan Electrochemical Scientific is expected to under-perform the Jinhui Mining. In addition to that, Xiangtan Electrochemical is 1.44 times more volatile than Jinhui Mining Co. It trades about -0.38 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.26 per unit of volatility. If you would invest 1,181 in Jinhui Mining Co on October 14, 2024 and sell it today you would lose (77.00) from holding Jinhui Mining Co or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Jinhui Mining Co
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Jinhui Mining |
Xiangtan Electrochemical and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Jinhui Mining
The main advantage of trading using opposite Xiangtan Electrochemical and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical 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.| Xiangtan Electrochemical vs. Aluminum Corp of | Xiangtan Electrochemical vs. Rising Nonferrous Metals | Xiangtan Electrochemical vs. Success Electronics | Xiangtan Electrochemical vs. Jiaozuo Wanfang Aluminum |
| Jinhui Mining vs. Union Semiconductor Co | Jinhui Mining vs. Xiangtan Electrochemical Scientific | Jinhui Mining vs. Ingenic Semiconductor | Jinhui Mining vs. StarPower Semiconductor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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