Correlation Between Western Mining and Xiamen Jihong
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By analyzing existing cross correlation between Western Mining Co and Xiamen Jihong Package, you can compare the effects of market volatilities on Western Mining and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Xiamen Jihong.
Diversification Opportunities for Western Mining and Xiamen Jihong
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Xiamen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Western Mining i.e., Western Mining and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Western Mining and Xiamen Jihong
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.67 times more return on investment than Xiamen Jihong. However, Western Mining Co is 1.48 times less risky than Xiamen Jihong. It trades about 0.06 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.0 per unit of risk. If you would invest 1,029 in Western Mining Co on October 13, 2024 and sell it today you would earn a total of 677.00 from holding Western Mining Co or generate 65.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Xiamen Jihong Package
Performance |
| Timeline |
| Western Mining |
| Xiamen Jihong Package |
Western Mining and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Xiamen Jihong
The main advantage of trading using opposite Western Mining and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Western Mining vs. CITIC Metal Co | Western Mining vs. China Aluminum International | Western Mining vs. Zhejiang Yongjin Metal | Western Mining vs. Shandong Hongchuang Aluminum |
| Xiamen Jihong vs. Shenzhen Silver Basis | Xiamen Jihong vs. Jilin OLED Material | Xiamen Jihong vs. Western Mining Co | Xiamen Jihong vs. Guangdong Silvere Sci |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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