Correlation Between Dongguan Tarry and Jinhui Mining
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Jinhui Mining Co, you can compare the effects of market volatilities on Dongguan Tarry and Jinhui 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 Dongguan Tarry with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Jinhui Mining.
Diversification Opportunities for Dongguan Tarry and Jinhui Mining
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongguan and Jinhui is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Dongguan Tarry 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 Dongguan Tarry Electronics are associated (or correlated) with Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Jinhui Mining go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Jinhui Mining
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to under-perform the Jinhui Mining. In addition to that, Dongguan Tarry is 2.32 times more volatile than Jinhui Mining Co. It trades about -0.09 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.06 per unit of volatility. If you would invest 1,160 in Jinhui Mining Co on October 28, 2024 and sell it today you would lose (21.00) from holding Jinhui Mining Co or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Jinhui Mining Co
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Jinhui Mining |
Dongguan Tarry and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Jinhui Mining
The main advantage of trading using opposite Dongguan Tarry and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Dongguan Tarry vs. Dareway Software Co | Dongguan Tarry vs. Guocheng Mining Co | Dongguan Tarry vs. Jiangxi Naipu Mining | Dongguan Tarry vs. GuoChuang Software Co |
| Jinhui Mining vs. North Copper Shanxi | Jinhui Mining vs. Shandong Rike Chemical | Jinhui Mining vs. Ningbo Jintian Copper | Jinhui Mining vs. Rising Nonferrous Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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