Correlation Between Hainan Mining and Shenzhen Centralcon
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By analyzing existing cross correlation between Hainan Mining Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Hainan Mining and Shenzhen Centralcon 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 Hainan Mining with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Shenzhen Centralcon.
Diversification Opportunities for Hainan Mining and Shenzhen Centralcon
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Shenzhen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Hainan 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 Hainan Mining Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Hainan Mining i.e., Hainan Mining and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Hainan Mining and Shenzhen Centralcon
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.69 times more return on investment than Shenzhen Centralcon. However, Hainan Mining Co is 1.45 times less risky than Shenzhen Centralcon. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.01 per unit of risk. If you would invest 673.00 in Hainan Mining Co on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Hainan Mining Co or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Hainan Mining |
| Shenzhen Centralcon |
Hainan Mining and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Shenzhen Centralcon
The main advantage of trading using opposite Hainan Mining and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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