Correlation Between Yunnan Xiyi and Hainan Mining
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Hainan Mining Co, you can compare the effects of market volatilities on Yunnan Xiyi and Hainan 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 Yunnan Xiyi with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Hainan Mining.
Diversification Opportunities for Yunnan Xiyi and Hainan Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yunnan and Hainan is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Yunnan Xiyi 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 Yunnan Xiyi Industrial are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Yunnan Xiyi i.e., Yunnan Xiyi and Hainan Mining go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Hainan Mining
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 1.62 times more return on investment than Hainan Mining. However, Yunnan Xiyi is 1.62 times more volatile than Hainan Mining Co. It trades about 0.08 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of risk. If you would invest 1,217 in Yunnan Xiyi Industrial on November 28, 2024 and sell it today you would earn a total of 1,423 from holding Yunnan Xiyi Industrial or generate 116.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Hainan Mining Co
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Hainan Mining |
Yunnan Xiyi and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Hainan Mining
The main advantage of trading using opposite Yunnan Xiyi and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Yunnan Xiyi vs. Anhui Jianghuai Automobile | Yunnan Xiyi vs. Xiangyang Automobile Bearing | Yunnan Xiyi vs. Dongfeng Automobile Co | Yunnan Xiyi vs. Shenzhen Kexin Communication |
| Hainan Mining vs. Penyao Environmental Protection | Hainan Mining vs. Changjiang Jinggong Steel | Hainan Mining vs. Tibet Huayu Mining | Hainan Mining vs. Guangdong Jingyi Metal |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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