Correlation Between Huaibei Mining and Shenzhen MYS
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By analyzing existing cross correlation between Huaibei Mining Holdings and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Huaibei Mining and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Shenzhen MYS.
Diversification Opportunities for Huaibei Mining and Shenzhen MYS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Huaibei Mining and Shenzhen MYS
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Shenzhen MYS. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.77 times less risky than Shenzhen MYS. The stock trades about -0.14 of its potential returns per unit of risk. The Shenzhen MYS Environmental is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Shenzhen MYS Environmental on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen MYS Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Shenzhen MYS Environ |
Huaibei Mining and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Shenzhen MYS
The main advantage of trading using opposite Huaibei Mining and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Huaibei Mining vs. Zhejiang Publishing Media | Huaibei Mining vs. Dhc Software Co | Huaibei Mining vs. iSoftStone Information Technology | Huaibei Mining vs. Kuang Chi Technologies |
| Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Xuzhou Handler Special | Shenzhen MYS vs. JCHX Mining Management | Shenzhen MYS vs. Zotye Automobile 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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