Correlation Between Shandong Sino and Hainan Mining
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By analyzing existing cross correlation between Shandong Sino Agri United and Hainan Mining Co, you can compare the effects of market volatilities on Shandong Sino 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 Shandong Sino with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sino and Hainan Mining.
Diversification Opportunities for Shandong Sino and Hainan Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Hainan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sino Agri United and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Shandong Sino 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 Shandong Sino Agri United 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 Shandong Sino i.e., Shandong Sino and Hainan Mining go up and down completely randomly.
Pair Corralation between Shandong Sino and Hainan Mining
Assuming the 90 days trading horizon Shandong Sino Agri United is expected to generate 2.07 times more return on investment than Hainan Mining. However, Shandong Sino is 2.07 times more volatile than Hainan Mining Co. It trades about 0.33 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 1,388 in Shandong Sino Agri United on September 3, 2024 and sell it today you would earn a total of 409.00 from holding Shandong Sino Agri United or generate 29.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sino Agri United vs. Hainan Mining Co
Performance |
| Timeline |
| Shandong Sino Agri |
| Hainan Mining |
Shandong Sino and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sino and Hainan Mining
The main advantage of trading using opposite Shandong Sino and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sino 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.| Shandong Sino vs. Jiangsu Jinling Sports | Shandong Sino vs. Hainan Mining Co | Shandong Sino vs. Fujian Oriental Silver | Shandong Sino vs. JCHX Mining Management |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Hoshine Silicon Ind |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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