Correlation Between Hainan Mining and Xiangyang Automobile
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By analyzing existing cross correlation between Hainan Mining Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Hainan Mining and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Xiangyang Automobile.
Diversification Opportunities for Hainan Mining and Xiangyang Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Xiangyang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Hainan Mining i.e., Hainan Mining and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Hainan Mining and Xiangyang Automobile
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.7 times more return on investment than Xiangyang Automobile. However, Hainan Mining Co is 1.43 times less risky than Xiangyang Automobile. It trades about 0.03 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.02 per unit of risk. If you would invest 672.00 in Hainan Mining Co on September 15, 2024 and sell it today you would earn a total of 102.00 from holding Hainan Mining Co or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Hainan Mining |
| Xiangyang Automobile |
Hainan Mining and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Xiangyang Automobile
The main advantage of trading using opposite Hainan Mining and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
| Xiangyang Automobile vs. BeiGene | Xiangyang Automobile vs. Kweichow Moutai Co | Xiangyang Automobile vs. Beijing Roborock Technology | Xiangyang Automobile vs. G bits Network Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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