Correlation Between Porton Fine and Huaibei Mining
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By analyzing existing cross correlation between Porton Fine Chemicals and Huaibei Mining Holdings, you can compare the effects of market volatilities on Porton Fine and Huaibei 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 Porton Fine with a short position of Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Huaibei Mining.
Diversification Opportunities for Porton Fine and Huaibei Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Porton and Huaibei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings and Porton Fine 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 Porton Fine Chemicals are associated (or correlated) with Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Porton Fine i.e., Porton Fine and Huaibei Mining go up and down completely randomly.
Pair Corralation between Porton Fine and Huaibei Mining
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Huaibei Mining. In addition to that, Porton Fine is 1.59 times more volatile than Huaibei Mining Holdings. It trades about -0.05 of its total potential returns per unit of risk. Huaibei Mining Holdings is currently generating about 0.02 per unit of volatility. If you would invest 1,218 in Huaibei Mining Holdings on October 28, 2024 and sell it today you would earn a total of 158.00 from holding Huaibei Mining Holdings or generate 12.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Porton Fine Chemicals |
| Huaibei Mining Holdings |
Porton Fine and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Huaibei Mining
The main advantage of trading using opposite Porton Fine and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine position performs unexpectedly, Huaibei 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Porton Fine vs. Ming Yang Smart | Porton Fine vs. 159681 | Porton Fine vs. 159005 | Porton Fine vs. Loctek Ergonomic Technology |
| Huaibei Mining vs. Fiberhome Telecommunication Technologies | Huaibei Mining vs. CSSC Offshore Marine | Huaibei Mining vs. Ziel Home Furnishing | Huaibei Mining vs. Qumei Furniture Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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