Correlation Between Jiujiang Shanshui and Hainan Mining
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Hainan Mining Co, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Hainan Mining.
Diversification Opportunities for Jiujiang Shanshui and Hainan Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Hainan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Hainan Mining go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Hainan Mining
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.17 times more return on investment than Hainan Mining. However, Jiujiang Shanshui is 1.17 times more volatile than Hainan Mining Co. It trades about 0.05 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.06 per unit of risk. If you would invest 1,570 in Jiujiang Shanshui Technology on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Jiujiang Shanshui Technology or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Hainan Mining Co
Performance |
| Timeline |
| Jiujiang Shanshui |
| Hainan Mining |
Jiujiang Shanshui and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Hainan Mining
The main advantage of trading using opposite Jiujiang Shanshui and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Hangzhou Pinming Software | Jiujiang Shanshui vs. Beijing Mainstreets Investment | Jiujiang Shanshui vs. Inspur Software Co | Jiujiang Shanshui vs. China National Software |
| Hainan Mining vs. Shanghai Xinhua Media | Hainan Mining vs. Guangzhou KingTeller Technology | Hainan Mining vs. Jiujiang Shanshui Technology | Hainan Mining vs. Sinofibers Technology Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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