Correlation Between Gansu Yasheng and Hainan Mining
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Hainan Mining Co, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Hainan Mining.
Diversification Opportunities for Gansu Yasheng and Hainan Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Hainan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Hainan Mining go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Hainan Mining
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 1.32 times more return on investment than Hainan Mining. However, Gansu Yasheng is 1.32 times more volatile than Hainan Mining Co. It trades about 0.15 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of risk. If you would invest 283.00 in Gansu Yasheng Industrial on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Gansu Yasheng Industrial or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Hainan Mining Co
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Hainan Mining |
Gansu Yasheng and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Hainan Mining
The main advantage of trading using opposite Gansu Yasheng and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Hunan TV Broadcast | Gansu Yasheng vs. Zhejiang Yongjin Metal | Gansu Yasheng vs. RoadMain T Co | Gansu Yasheng vs. Hubeiyichang Transportation Group |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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