Correlation Between Tjk Machinery and Hainan Mining
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Hainan Mining Co, you can compare the effects of market volatilities on Tjk Machinery 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 Tjk Machinery with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Hainan Mining.
Diversification Opportunities for Tjk Machinery and Hainan Mining
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tjk and Hainan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Tjk Machinery 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 Tjk Machinery Tianjin 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 Tjk Machinery i.e., Tjk Machinery and Hainan Mining go up and down completely randomly.
Pair Corralation between Tjk Machinery and Hainan Mining
Assuming the 90 days trading horizon Tjk Machinery is expected to generate 15.01 times less return on investment than Hainan Mining. But when comparing it to its historical volatility, Tjk Machinery Tianjin is 1.14 times less risky than Hainan Mining. It trades about 0.01 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Hainan Mining Co on September 28, 2024 and sell it today you would earn a total of 37.00 from holding Hainan Mining Co or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Hainan Mining Co
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Hainan Mining |
Tjk Machinery and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Hainan Mining
The main advantage of trading using opposite Tjk Machinery and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery 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.| Tjk Machinery vs. Emdoor Information Co | Tjk Machinery vs. Guangzhou Ruoyuchen Information | Tjk Machinery vs. Fujian Longzhou Transportation | Tjk Machinery vs. Jiangsu Jinling Sports |
| Hainan Mining vs. Tianshui Huatian Technology | Hainan Mining vs. Sinocelltech Group | Hainan Mining vs. Hangzhou Pinming Software | Hainan Mining vs. Western Superconducting Tech |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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