Correlation Between Huaibei Mining and Gem Year
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By analyzing existing cross correlation between Huaibei Mining Holdings and Gem Year Industrial Co, you can compare the effects of market volatilities on Huaibei Mining and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Gem Year.
Diversification Opportunities for Huaibei Mining and Gem Year
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaibei and Gem is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Huaibei Mining i.e., Huaibei Mining and Gem Year go up and down completely randomly.
Pair Corralation between Huaibei Mining and Gem Year
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to generate 0.94 times more return on investment than Gem Year. However, Huaibei Mining Holdings is 1.07 times less risky than Gem Year. It trades about 0.02 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.01 per unit of risk. If you would invest 1,199 in Huaibei Mining Holdings on September 28, 2024 and sell it today you would earn a total of 187.00 from holding Huaibei Mining Holdings or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Gem Year Industrial Co
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Gem Year Industrial |
Huaibei Mining and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Gem Year
The main advantage of trading using opposite Huaibei Mining and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year'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 |
| Gem Year vs. Zhejiang Yayi Metal | Gem Year vs. Chengtun Mining Group | Gem Year vs. Huaibei Mining Holdings | Gem Year vs. Jinhui Mining 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 Stocks Directory module to find actively traded stocks across global markets.
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