Correlation Between Fujian Oriental and Huaibei Mining
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By analyzing existing cross correlation between Fujian Oriental Silver and Huaibei Mining Holdings, you can compare the effects of market volatilities on Fujian Oriental and Huaibei 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 Fujian Oriental with a short position of Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Huaibei Mining.
Diversification Opportunities for Fujian Oriental and Huaibei Mining
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Huaibei is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings and Fujian Oriental 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 Fujian Oriental Silver are associated (or correlated) with Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Huaibei Mining go up and down completely randomly.
Pair Corralation between Fujian Oriental and Huaibei Mining
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Huaibei Mining. In addition to that, Fujian Oriental is 2.67 times more volatile than Huaibei Mining Holdings. It trades about -0.13 of its total potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.13 per unit of volatility. If you would invest 1,460 in Huaibei Mining Holdings on September 27, 2024 and sell it today you would lose (59.00) from holding Huaibei Mining Holdings or give up 4.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Fujian Oriental Silver |
| Huaibei Mining Holdings |
Fujian Oriental and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Huaibei Mining
The main advantage of trading using opposite Fujian Oriental and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Huaibei 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei 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 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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