Correlation Between Shanghai Broadband and Jinhui Mining
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By analyzing existing cross correlation between Shanghai Broadband Technology and Jinhui Mining Co, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Jinhui Mining.
Diversification Opportunities for Shanghai Broadband and Jinhui Mining
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Jinhui is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Jinhui Mining go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Jinhui Mining
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Jinhui Mining. In addition to that, Shanghai Broadband is 2.31 times more volatile than Jinhui Mining Co. It trades about -0.05 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.13 per unit of volatility. If you would invest 1,109 in Jinhui Mining Co on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Jinhui Mining Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Jinhui Mining Co
Performance |
| Timeline |
| Shanghai Broadband |
| Jinhui Mining |
Shanghai Broadband and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Jinhui Mining
The main advantage of trading using opposite Shanghai Broadband and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Invengo Information Technology | Shanghai Broadband vs. Hangzhou Gisway Information | Shanghai Broadband vs. Bonree Data Technology | Shanghai Broadband vs. Chengdu B ray Media |
| Jinhui Mining vs. Shenzhen Centralcon Investment | Jinhui Mining vs. Shaanxi Energy Investment | Jinhui Mining vs. Nuode Investment Co | Jinhui Mining vs. Tieling Newcity 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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