Correlation Between Guangdong Xiongsu and Hainan Mining
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Hainan Mining Co, you can compare the effects of market volatilities on Guangdong Xiongsu 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 Guangdong Xiongsu with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Hainan Mining.
Diversification Opportunities for Guangdong Xiongsu and Hainan Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Hainan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Guangdong Xiongsu 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 Guangdong Xiongsu Technology 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 Guangdong Xiongsu i.e., Guangdong Xiongsu and Hainan Mining go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Hainan Mining
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the Hainan Mining. In addition to that, Guangdong Xiongsu is 1.69 times more volatile than Hainan Mining Co. It trades about -0.02 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.03 per unit of volatility. If you would invest 697.00 in Hainan Mining Co on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Hainan Mining Co or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Hainan Mining Co
Performance |
| Timeline |
| Guangdong Xiongsu |
| Hainan Mining |
Guangdong Xiongsu and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Hainan Mining
The main advantage of trading using opposite Guangdong Xiongsu and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu 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.| Guangdong Xiongsu vs. Industrial and Commercial | Guangdong Xiongsu vs. Agricultural Bank of | Guangdong Xiongsu vs. China Construction Bank | Guangdong Xiongsu vs. Bank of China |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
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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