Correlation Between Xinjiang Tianrun and Jinhui Mining
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Jinhui Mining Co, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Jinhui Mining.
Diversification Opportunities for Xinjiang Tianrun and Jinhui Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Jinhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Jinhui Mining go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Jinhui Mining
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Jinhui Mining. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.04 times less risky than Jinhui Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Jinhui Mining Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,254 in Jinhui Mining Co on September 12, 2024 and sell it today you would lose (60.00) from holding Jinhui Mining Co or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Jinhui Mining Co
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Jinhui Mining |
Xinjiang Tianrun and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Jinhui Mining
The main advantage of trading using opposite Xinjiang Tianrun and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Rongsheng Petrochemical 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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