Correlation Between Huaibei Mining and Fujian Oriental
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By analyzing existing cross correlation between Huaibei Mining Holdings and Fujian Oriental Silver, you can compare the effects of market volatilities on Huaibei Mining and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Fujian Oriental.
Diversification Opportunities for Huaibei Mining and Fujian Oriental
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huaibei and Fujian is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Fujian Oriental go up and down completely randomly.
Pair Corralation between Huaibei Mining and Fujian Oriental
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to generate 0.37 times more return on investment than Fujian Oriental. However, Huaibei Mining Holdings is 2.67 times less risky than Fujian Oriental. It trades about -0.13 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.13 per unit of risk. If you would invest 1,460 in Huaibei Mining Holdings on September 27, 2024 and sell it today you would lose (59.00) from holding Huaibei Mining Holdings or give up 4.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Fujian Oriental Silver
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Fujian Oriental Silver |
Huaibei Mining and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Fujian Oriental
The main advantage of trading using opposite Huaibei Mining and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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