Correlation Between Inner Mongolia and Jinhui Mining
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Jinhui Mining Co, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Jinhui Mining.
Diversification Opportunities for Inner Mongolia and Jinhui Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inner and Jinhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Inner Mongolia 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 Inner Mongolia BaoTou 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 Inner Mongolia i.e., Inner Mongolia and Jinhui Mining go up and down completely randomly.
Pair Corralation between Inner Mongolia and Jinhui Mining
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.98 times more return on investment than Jinhui Mining. However, Inner Mongolia is 1.98 times more volatile than Jinhui Mining Co. It trades about 0.15 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.11 per unit of risk. If you would invest 175.00 in Inner Mongolia BaoTou on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Inner Mongolia BaoTou or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Jinhui Mining Co
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Jinhui Mining |
Inner Mongolia and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Jinhui Mining
The main advantage of trading using opposite Inner Mongolia and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Xiangyang Automobile Bearing | Inner Mongolia vs. Heren Health Co | Inner Mongolia vs. Sinomach Automobile Co | Inner Mongolia vs. Anhui Jianghuai Automobile |
| Jinhui Mining vs. Panda Financial Holding | Jinhui Mining vs. Gome Telecom Equipment | Jinhui Mining vs. Guangdong Qunxing Toys | Jinhui Mining vs. China Everbright Bank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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