Correlation Between Western Mining and Unisplendour Corp
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By analyzing existing cross correlation between Western Mining Co and Unisplendour Corp, you can compare the effects of market volatilities on Western Mining and Unisplendour Corp 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 Western Mining with a short position of Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Unisplendour Corp.
Diversification Opportunities for Western Mining and Unisplendour Corp
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Western and Unisplendour is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp and Western 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 Western Mining Co are associated (or correlated) with Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Western Mining i.e., Western Mining and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Western Mining and Unisplendour Corp
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.6 times more return on investment than Unisplendour Corp. However, Western Mining Co is 1.68 times less risky than Unisplendour Corp. It trades about -0.27 of its potential returns per unit of risk. Unisplendour Corp is currently generating about -0.37 per unit of risk. If you would invest 1,828 in Western Mining Co on September 12, 2024 and sell it today you would lose (152.00) from holding Western Mining Co or give up 8.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Unisplendour Corp
Performance |
| Timeline |
| Western Mining |
| Unisplendour Corp |
Western Mining and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Unisplendour Corp
The main advantage of trading using opposite Western Mining and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp's long position.| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Rongsheng Petrochemical Co |
| Unisplendour Corp vs. Gansu Jiu Steel | Unisplendour Corp vs. Shandong Mining Machinery | Unisplendour Corp vs. Aba Chemicals Corp | Unisplendour Corp vs. BlueFocus Communication Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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