Correlation Between Chongqing Shunbo and Hainan Mining
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By analyzing existing cross correlation between Chongqing Shunbo Aluminum and Hainan Mining Co, you can compare the effects of market volatilities on Chongqing Shunbo 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 Chongqing Shunbo with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and Hainan Mining.
Diversification Opportunities for Chongqing Shunbo and Hainan Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Hainan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Chongqing Shunbo 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 Chongqing Shunbo Aluminum 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 Chongqing Shunbo i.e., Chongqing Shunbo and Hainan Mining go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and Hainan Mining
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 0.89 times more return on investment than Hainan Mining. However, Chongqing Shunbo Aluminum is 1.12 times less risky than Hainan Mining. It trades about 0.03 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 649.00 in Chongqing Shunbo Aluminum on October 26, 2024 and sell it today you would earn a total of 14.00 from holding Chongqing Shunbo Aluminum or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. Hainan Mining Co
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| Hainan Mining |
Chongqing Shunbo and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and Hainan Mining
The main advantage of trading using opposite Chongqing Shunbo and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo 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.| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Shandong Gold Mining |
| Hainan Mining vs. Chongqing Shunbo Aluminum | Hainan Mining vs. Zhongzhu Medical Holdings | Hainan Mining vs. Cowealth Medical China | Hainan Mining vs. ZYF Lopsking Aluminum |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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