Correlation Between Huaibei Mining and Hubei Xingfa
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By analyzing existing cross correlation between Huaibei Mining Holdings and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Huaibei Mining and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Hubei Xingfa.
Diversification Opportunities for Huaibei Mining and Hubei Xingfa
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Hubei is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Huaibei Mining and Hubei Xingfa
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to generate 0.93 times more return on investment than Hubei Xingfa. However, Huaibei Mining Holdings is 1.07 times less risky than Hubei Xingfa. It trades about 0.02 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.02 per unit of risk. If you would invest 1,300 in Huaibei Mining Holdings on August 26, 2024 and sell it today you would earn a total of 182.00 from holding Huaibei Mining Holdings or generate 14.0% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Hubei Xingfa Chemicals |
Huaibei Mining and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Hubei Xingfa
The main advantage of trading using opposite Huaibei Mining and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei Mining vs. Rongsheng Petrochemical Co |
| Hubei Xingfa vs. Huaibei Mining Holdings | Hubei Xingfa vs. Guocheng Mining Co | Hubei Xingfa vs. Shandong Mining Machinery | Hubei Xingfa vs. Peoples Insurance of |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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