Correlation Between Changchun Faway and Hainan Mining
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By analyzing existing cross correlation between Changchun Faway Automobile and Hainan Mining Co, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Hainan Mining.
Diversification Opportunities for Changchun Faway and Hainan Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Hainan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Changchun Faway 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 Changchun Faway Automobile 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 Changchun Faway i.e., Changchun Faway and Hainan Mining go up and down completely randomly.
Pair Corralation between Changchun Faway and Hainan Mining
Assuming the 90 days trading horizon Changchun Faway Automobile is not expected to generate positive returns. However, Changchun Faway Automobile is 1.08 times less risky than Hainan Mining. It waists most of its returns potential to compensate for thr risk taken. Hainan Mining is generating about 0.03 per unit of risk. If you would invest 672.00 in Hainan Mining Co on September 15, 2024 and sell it today you would earn a total of 102.00 from holding Hainan Mining Co or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Hainan Mining Co
Performance |
| Timeline |
| Changchun Faway Auto |
| Hainan Mining |
Changchun Faway and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Hainan Mining
The main advantage of trading using opposite Changchun Faway and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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