Correlation Between Cultural Investment and Jinhui Mining
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By analyzing existing cross correlation between Cultural Investment Holdings and Jinhui Mining Co, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Jinhui Mining.
Diversification Opportunities for Cultural Investment and Jinhui Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and Jinhui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Cultural Investment 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 Cultural Investment Holdings 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 Cultural Investment i.e., Cultural Investment and Jinhui Mining go up and down completely randomly.
Pair Corralation between Cultural Investment and Jinhui Mining
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.5 times more return on investment than Jinhui Mining. However, Cultural Investment is 1.5 times more volatile than Jinhui Mining Co. It trades about 0.26 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.05 per unit of risk. If you would invest 197.00 in Cultural Investment Holdings on August 25, 2024 and sell it today you would earn a total of 37.00 from holding Cultural Investment Holdings or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Jinhui Mining Co
Performance |
| Timeline |
| Cultural Investment |
| Jinhui Mining |
Cultural Investment and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Jinhui Mining
The main advantage of trading using opposite Cultural Investment and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. Bank of China | Cultural Investment vs. PetroChina Co Ltd |
| Jinhui Mining vs. Changchun UP Optotech | Jinhui Mining vs. Cultural Investment Holdings | Jinhui Mining vs. Harbin Hatou Investment | Jinhui Mining vs. Kuangda Technology Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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