Correlation Between Fujian Longzhou and Jinhui Mining
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Jinhui Mining Co, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Jinhui Mining.
Diversification Opportunities for Fujian Longzhou and Jinhui Mining
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Jinhui is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Jinhui Mining go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Jinhui Mining
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.73 times more return on investment than Jinhui Mining. However, Fujian Longzhou is 1.73 times more volatile than Jinhui Mining Co. It trades about 0.01 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.0 per unit of risk. If you would invest 452.00 in Fujian Longzhou Transportation on October 11, 2024 and sell it today you would lose (40.00) from holding Fujian Longzhou Transportation or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Jinhui Mining Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Jinhui Mining |
Fujian Longzhou and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Jinhui Mining
The main advantage of trading using opposite Fujian Longzhou and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Shenzhen Noposion Agrochemicals | Fujian Longzhou vs. Chongqing Brewery Co | Fujian Longzhou vs. China Aluminum International | Fujian Longzhou vs. Heilongjiang Transport Development |
| Jinhui Mining vs. Sichuan Fulin Transportation | Jinhui Mining vs. Haima Automobile Group | Jinhui Mining vs. Fujian Longzhou Transportation | Jinhui Mining vs. Wuhan Yangtze Communication |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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