Correlation Between Huaibei Mining and Jiangxi Lianchuang
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By analyzing existing cross correlation between Huaibei Mining Holdings and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Huaibei Mining and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Jiangxi Lianchuang.
Diversification Opportunities for Huaibei Mining and Jiangxi Lianchuang
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huaibei and Jiangxi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Huaibei Mining and Jiangxi Lianchuang
Assuming the 90 days trading horizon Huaibei Mining is expected to generate 2.09 times less return on investment than Jiangxi Lianchuang. But when comparing it to its historical volatility, Huaibei Mining Holdings is 2.03 times less risky than Jiangxi Lianchuang. It trades about 0.19 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,412 in Jiangxi Lianchuang Opto electronic on November 6, 2024 and sell it today you would earn a total of 396.00 from holding Jiangxi Lianchuang Opto electronic or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Jiangxi Lianchuang Opto |
Huaibei Mining and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Jiangxi Lianchuang
The main advantage of trading using opposite Huaibei Mining and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Huaibei Mining vs. Jahen Household Products | Huaibei Mining vs. Ningxia Younglight Chemicals | Huaibei Mining vs. Hangzhou Gisway Information | Huaibei Mining vs. Digital China Information |
| Jiangxi Lianchuang vs. Qijing Machinery | Jiangxi Lianchuang vs. Linzhou Heavy Machinery | Jiangxi Lianchuang vs. Shenzhen Zhongzhuang Construction | Jiangxi Lianchuang vs. Allied Machinery 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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