Correlation Between Guangdong Jingyi and Hainan Mining
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Hainan Mining Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Hainan Mining.
Diversification Opportunities for Guangdong Jingyi and Hainan Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Hainan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Hainan Mining go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Hainan Mining
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.04 times more return on investment than Hainan Mining. However, Guangdong Jingyi is 1.04 times more volatile than Hainan Mining Co. It trades about 0.1 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.01 per unit of risk. If you would invest 564.00 in Guangdong Jingyi Metal on September 2, 2024 and sell it today you would earn a total of 172.00 from holding Guangdong Jingyi Metal or generate 30.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Hainan Mining Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Hainan Mining |
Guangdong Jingyi and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Hainan Mining
The main advantage of trading using opposite Guangdong Jingyi and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Dongfeng Automobile Co | Guangdong Jingyi vs. Peoples Insurance of | Guangdong Jingyi vs. China Life Insurance | Guangdong Jingyi vs. Anhui Deli Household |
| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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