Correlation Between Hainan Mining and Jiugui Liquor
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By analyzing existing cross correlation between Hainan Mining Co and Jiugui Liquor Co, you can compare the effects of market volatilities on Hainan Mining and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Jiugui Liquor.
Diversification Opportunities for Hainan Mining and Jiugui Liquor
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Jiugui is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Hainan Mining i.e., Hainan Mining and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Hainan Mining and Jiugui Liquor
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.85 times more return on investment than Jiugui Liquor. However, Hainan Mining Co is 1.17 times less risky than Jiugui Liquor. It trades about -0.01 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.08 per unit of risk. If you would invest 776.00 in Hainan Mining Co on October 16, 2024 and sell it today you would lose (124.00) from holding Hainan Mining Co or give up 15.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Jiugui Liquor Co
Performance |
| Timeline |
| Hainan Mining |
| Jiugui Liquor |
Hainan Mining and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Jiugui Liquor
The main advantage of trading using opposite Hainan Mining and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Hainan Mining vs. Zhongfu Information | Hainan Mining vs. Leyard Optoelectronic | Hainan Mining vs. Hygon Information Technology | Hainan Mining vs. CITIC Guoan Information |
| Jiugui Liquor vs. MayAir Technology Co | Jiugui Liquor vs. Jiangsu Yueda Investment | Jiugui Liquor vs. Chengdu Xingrong Investment | Jiugui Liquor vs. Hainan Mining Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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