Correlation Between Huaibei Mining and Shandong Link
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By analyzing existing cross correlation between Huaibei Mining Holdings and Shandong Link Science, you can compare the effects of market volatilities on Huaibei Mining and Shandong Link 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 Huaibei Mining with a short position of Shandong Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Shandong Link.
Diversification Opportunities for Huaibei Mining and Shandong Link
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huaibei and Shandong is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Shandong Link Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Link Science and Huaibei Mining 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 Huaibei Mining Holdings are associated (or correlated) with Shandong Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Link Science has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Shandong Link go up and down completely randomly.
Pair Corralation between Huaibei Mining and Shandong Link
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Shandong Link. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 2.0 times less risky than Shandong Link. The stock trades about -0.04 of its potential returns per unit of risk. The Shandong Link Science is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,125 in Shandong Link Science on September 13, 2024 and sell it today you would lose (12.00) from holding Shandong Link Science or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Shandong Link Science
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Shandong Link Science |
Huaibei Mining and Shandong Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Shandong Link
The main advantage of trading using opposite Huaibei Mining and Shandong Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Shandong Link 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 Shandong Link will offset losses from the drop in Shandong Link's long position.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Wanhua Chemical Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining |
| Shandong Link vs. Sanbo Hospital Management | Shandong Link vs. Huaibei Mining Holdings | Shandong Link vs. Guocheng Mining Co | Shandong Link vs. Jiangxi Naipu 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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