Correlation Between Hainan Mining and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Hainan Mining and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangdong Jingyi.
Diversification Opportunities for Hainan Mining and Guangdong Jingyi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Guangdong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangdong Jingyi
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.25 times less risky than Guangdong Jingyi. The stock trades about 0.0 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 771.00 in Guangdong Jingyi Metal on October 30, 2024 and sell it today you would lose (42.00) from holding Guangdong Jingyi Metal or give up 5.45% 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. Guangdong Jingyi Metal
Performance |
| Timeline |
| Hainan Mining |
| Guangdong Jingyi Metal |
Hainan Mining and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangdong Jingyi
The main advantage of trading using opposite Hainan Mining and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |