Correlation Between Baoshan Iron and Jinhui Mining
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By analyzing existing cross correlation between Baoshan Iron Steel and Jinhui Mining Co, you can compare the effects of market volatilities on Baoshan Iron 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 Baoshan Iron with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Jinhui Mining.
Diversification Opportunities for Baoshan Iron and Jinhui Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baoshan and Jinhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Baoshan Iron 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 Baoshan Iron Steel 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 Baoshan Iron i.e., Baoshan Iron and Jinhui Mining go up and down completely randomly.
Pair Corralation between Baoshan Iron and Jinhui Mining
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 1.01 times more return on investment than Jinhui Mining. However, Baoshan Iron is 1.01 times more volatile than Jinhui Mining Co. It trades about 0.07 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.04 per unit of risk. If you would invest 601.00 in Baoshan Iron Steel on August 25, 2024 and sell it today you would earn a total of 55.00 from holding Baoshan Iron Steel or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Jinhui Mining Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| Jinhui Mining |
Baoshan Iron and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Jinhui Mining
The main advantage of trading using opposite Baoshan Iron and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron 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.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
| Jinhui Mining vs. Changchun UP Optotech | Jinhui Mining vs. Cultural Investment Holdings | Jinhui Mining vs. Harbin Hatou Investment | Jinhui Mining vs. Kuangda Technology Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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