Correlation Between Huaibei Mining and HeNan Splendor
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By analyzing existing cross correlation between Huaibei Mining Holdings and HeNan Splendor Science, you can compare the effects of market volatilities on Huaibei Mining and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and HeNan Splendor.
Diversification Opportunities for Huaibei Mining and HeNan Splendor
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaibei and HeNan is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and HeNan Splendor go up and down completely randomly.
Pair Corralation between Huaibei Mining and HeNan Splendor
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to generate 0.46 times more return on investment than HeNan Splendor. However, Huaibei Mining Holdings is 2.19 times less risky than HeNan Splendor. It trades about -0.09 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about -0.05 per unit of risk. If you would invest 1,388 in Huaibei Mining Holdings on October 22, 2024 and sell it today you would lose (38.00) from holding Huaibei Mining Holdings or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. HeNan Splendor Science
Performance |
| Timeline |
| Huaibei Mining Holdings |
| HeNan Splendor Science |
Huaibei Mining and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and HeNan Splendor
The main advantage of trading using opposite Huaibei Mining and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Huaibei Mining vs. Songz Automobile Air | Huaibei Mining vs. China National Software | Huaibei Mining vs. Guangzhou Automobile Group | Huaibei Mining vs. Anhui Jianghuai Automobile |
| HeNan Splendor vs. Chengdu Xingrong Investment | HeNan Splendor vs. Tieling Newcity Investment | HeNan Splendor vs. Jointo Energy Investment | HeNan Splendor vs. Zoje Resources 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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