Correlation Between Huaibei Mining and Chengdu B
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By analyzing existing cross correlation between Huaibei Mining Holdings and Chengdu B ray Media, you can compare the effects of market volatilities on Huaibei Mining and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Chengdu B.
Diversification Opportunities for Huaibei Mining and Chengdu B
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huaibei and Chengdu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Chengdu B go up and down completely randomly.
Pair Corralation between Huaibei Mining and Chengdu B
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Chengdu B. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.8 times less risky than Chengdu B. The stock trades about -0.25 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 469.00 in Chengdu B ray Media on August 28, 2024 and sell it today you would earn a total of 23.00 from holding Chengdu B ray Media or generate 4.9% 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. Chengdu B ray Media
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Chengdu B ray |
Huaibei Mining and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Chengdu B
The main advantage of trading using opposite Huaibei Mining and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Huaibei Mining vs. Jonjee Hi tech Industrial | Huaibei Mining vs. Zhejiang Yayi Metal | Huaibei Mining vs. Wuhan Yangtze Communication | Huaibei Mining vs. Shanghai Yanpu Metal |
| Chengdu B vs. China State Construction | Chengdu B vs. Huafa Industrial Co | Chengdu B vs. China International Capital | Chengdu B vs. Kweichow Moutai 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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