Correlation Between Hubeiyichang Transportation and Jinhui Mining
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Jinhui Mining Co, you can compare the effects of market volatilities on Hubeiyichang Transportation 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 Hubeiyichang Transportation with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Jinhui Mining.
Diversification Opportunities for Hubeiyichang Transportation and Jinhui Mining
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubeiyichang and Jinhui is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group 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 Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Jinhui Mining go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Jinhui Mining
Assuming the 90 days trading horizon Hubeiyichang Transportation is expected to generate 1.23 times less return on investment than Jinhui Mining. In addition to that, Hubeiyichang Transportation is 1.33 times more volatile than Jinhui Mining Co. It trades about 0.08 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.13 per unit of volatility. If you would invest 1,109 in Jinhui Mining Co on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Jinhui Mining Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Jinhui Mining Co
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Jinhui Mining |
Hubeiyichang Transportation and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Jinhui Mining
The main advantage of trading using opposite Hubeiyichang Transportation and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation 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.| Hubeiyichang Transportation vs. Hua Xia Bank | Hubeiyichang Transportation vs. Agricultural Bank of | Hubeiyichang Transportation vs. Ping An Insurance | Hubeiyichang Transportation vs. Dongfeng Automobile Co |
| Jinhui Mining vs. Shenzhen Centralcon Investment | Jinhui Mining vs. Shaanxi Energy Investment | Jinhui Mining vs. Nuode Investment Co | Jinhui Mining vs. Tieling Newcity Investment |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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