Correlation Between Shenzhen Noposion and Jinhui Mining
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Jinhui Mining Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Jinhui Mining.
Diversification Opportunities for Shenzhen Noposion and Jinhui Mining
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Jinhui is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Jinhui Mining go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Jinhui Mining
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Jinhui Mining. In addition to that, Shenzhen Noposion is 2.45 times more volatile than Jinhui Mining Co. It trades about -0.04 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.04 per unit of volatility. If you would invest 1,134 in Jinhui Mining Co on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Jinhui Mining Co or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Jinhui Mining Co
Performance |
| Timeline |
| Shenzhen Noposion |
| Jinhui Mining |
Shenzhen Noposion and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Jinhui Mining
The main advantage of trading using opposite Shenzhen Noposion and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
| Jinhui Mining vs. Smartgiant Technology Co | Jinhui Mining vs. Offcn Education Technology | Jinhui Mining vs. Zhejiang Publishing Media | Jinhui Mining vs. Olympic Circuit Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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