Correlation Between Hainan Mining and Shenyang Huitian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Hainan Mining and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Shenyang Huitian.
Diversification Opportunities for Hainan Mining and Shenyang Huitian
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Shenyang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Hainan Mining i.e., Hainan Mining and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Hainan Mining and Shenyang Huitian
Assuming the 90 days trading horizon Hainan Mining is expected to generate 2.06 times less return on investment than Shenyang Huitian. But when comparing it to its historical volatility, Hainan Mining Co is 1.18 times less risky than Shenyang Huitian. It trades about 0.01 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Shenyang Huitian Thermal on August 27, 2024 and sell it today you would lose (17.00) from holding Shenyang Huitian Thermal or give up 4.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hainan Mining Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Hainan Mining |
| Shenyang Huitian Thermal |
Hainan Mining and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Shenyang Huitian
The main advantage of trading using opposite Hainan Mining and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| Shenyang Huitian vs. Wuhan Yangtze Communication | Shenyang Huitian vs. Henzhen Zhaowei Machinery | Shenyang Huitian vs. Sinomach General Machinery | Shenyang Huitian vs. Nanjing Putian Telecommunications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |