Correlation Between Hainan Mining and Nanjing Yunhai
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By analyzing existing cross correlation between Hainan Mining Co and Nanjing Yunhai Special, you can compare the effects of market volatilities on Hainan Mining and Nanjing Yunhai 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 Nanjing Yunhai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Nanjing Yunhai.
Diversification Opportunities for Hainan Mining and Nanjing Yunhai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Nanjing Yunhai Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Yunhai Special 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 Nanjing Yunhai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Yunhai Special has no effect on the direction of Hainan Mining i.e., Hainan Mining and Nanjing Yunhai go up and down completely randomly.
Pair Corralation between Hainan Mining and Nanjing Yunhai
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.87 times more return on investment than Nanjing Yunhai. However, Hainan Mining Co is 1.14 times less risky than Nanjing Yunhai. It trades about 0.03 of its potential returns per unit of risk. Nanjing Yunhai Special is currently generating about 0.0 per unit of risk. If you would invest 653.00 in Hainan Mining Co on September 13, 2024 and sell it today you would earn a total of 105.00 from holding Hainan Mining Co or generate 16.08% 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. Nanjing Yunhai Special
Performance |
| Timeline |
| Hainan Mining |
| Nanjing Yunhai Special |
Hainan Mining and Nanjing Yunhai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Nanjing Yunhai
The main advantage of trading using opposite Hainan Mining and Nanjing Yunhai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Nanjing Yunhai 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 Nanjing Yunhai will offset losses from the drop in Nanjing Yunhai's long position.| Hainan Mining vs. Silkroad Visual Technology | Hainan Mining vs. Longjian Road Bridge | Hainan Mining vs. Juneyao Airlines | Hainan Mining vs. Hainan Haiqi Transportation |
| Nanjing Yunhai vs. Ye Chiu Metal | Nanjing Yunhai vs. Qingdao Choho Industrial | Nanjing Yunhai vs. Hainan Mining Co | Nanjing Yunhai vs. Chengtun Mining Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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