Correlation Between Hainan Mining and Jilin Chemical
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By analyzing existing cross correlation between Hainan Mining Co and Jilin Chemical Fibre, you can compare the effects of market volatilities on Hainan Mining and Jilin Chemical 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 Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Jilin Chemical.
Diversification Opportunities for Hainan Mining and Jilin Chemical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Jilin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre 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 Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Hainan Mining i.e., Hainan Mining and Jilin Chemical go up and down completely randomly.
Pair Corralation between Hainan Mining and Jilin Chemical
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.89 times more return on investment than Jilin Chemical. However, Hainan Mining Co is 1.12 times less risky than Jilin Chemical. It trades about -0.02 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.06 per unit of risk. If you would invest 703.00 in Hainan Mining Co on October 30, 2024 and sell it today you would lose (25.00) from holding Hainan Mining Co or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Hainan Mining |
| Jilin Chemical Fibre |
Hainan Mining and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Jilin Chemical
The main advantage of trading using opposite Hainan Mining and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Hainan Mining vs. China Sports Industry | Hainan Mining vs. Citic Offshore Helicopter | Hainan Mining vs. Jiangsu Jinling Sports | Hainan Mining vs. Jiangsu Hoperun Software |
| Jilin Chemical vs. GuoChuang Software Co | Jilin Chemical vs. Shantui Construction Machinery | Jilin Chemical vs. Qijing Machinery | Jilin Chemical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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