Correlation Between China Railway and Jinhui Mining
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By analyzing existing cross correlation between China Railway Construction and Jinhui Mining Co, you can compare the effects of market volatilities on China Railway and Jinhui Mining 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 China Railway with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Jinhui Mining.
Diversification Opportunities for China Railway and Jinhui Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jinhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and China Railway 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 China Railway Construction are associated (or correlated) with Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of China Railway i.e., China Railway and Jinhui Mining go up and down completely randomly.
Pair Corralation between China Railway and Jinhui Mining
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.96 times more return on investment than Jinhui Mining. However, China Railway Construction is 1.04 times less risky than Jinhui Mining. It trades about 0.03 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.04 per unit of risk. If you would invest 863.00 in China Railway Construction on August 29, 2024 and sell it today you would earn a total of 57.00 from holding China Railway Construction or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Jinhui Mining Co
Performance |
| Timeline |
| China Railway Constr |
| Jinhui Mining |
China Railway and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Jinhui Mining
The main advantage of trading using opposite China Railway and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| China Railway vs. Guangxi Wuzhou Communications | China Railway vs. UE Furniture Co | China Railway vs. Dr Peng Telecom | China Railway vs. Oppein Home Group |
| Jinhui Mining vs. Shandong Gold Mining | Jinhui Mining vs. Rongsheng Petrochemical Co | Jinhui Mining vs. Inner Mongolia BaoTou | Jinhui Mining vs. Jiangxi Ganfeng Lithium |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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