Correlation Between China Sports and Hainan Mining
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By analyzing existing cross correlation between China Sports Industry and Hainan Mining Co, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Hainan Mining.
Diversification Opportunities for China Sports and Hainan Mining
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Hainan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Hainan Mining go up and down completely randomly.
Pair Corralation between China Sports and Hainan Mining
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.85 times more return on investment than Hainan Mining. However, China Sports Industry is 1.17 times less risky than Hainan Mining. 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 799.00 in China Sports Industry on September 2, 2024 and sell it today you would earn a total of 42.00 from holding China Sports Industry or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Hainan Mining Co
Performance |
| Timeline |
| China Sports Industry |
| Hainan Mining |
China Sports and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Hainan Mining
The main advantage of trading using opposite China Sports and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Huitong Construction Group | China Sports vs. Shaanxi Construction Machinery | China Sports vs. Long Yuan Construction | China Sports vs. China Life Insurance |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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