Correlation Between Hubei Geoway and Hainan Mining
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By analyzing existing cross correlation between Hubei Geoway Investment and Hainan Mining Co, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Hainan Mining.
Diversification Opportunities for Hubei Geoway and Hainan Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Hainan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Hainan Mining go up and down completely randomly.
Pair Corralation between Hubei Geoway and Hainan Mining
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.06 times more return on investment than Hainan Mining. However, Hubei Geoway is 1.06 times more volatile than Hainan Mining Co. It trades about 0.28 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.09 per unit of risk. If you would invest 152.00 in Hubei Geoway Investment on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Hubei Geoway Investment or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Hainan Mining Co
Performance |
| Timeline |
| Hubei Geoway Investment |
| Hainan Mining |
Hubei Geoway and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Hainan Mining
The main advantage of trading using opposite Hubei Geoway and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
| Hainan Mining vs. Cowealth Medical China | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Jiangsu Yueda Investment | Hainan Mining vs. Hubei Geoway Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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