Correlation Between Hainan Mining and Integrated Electronic
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By analyzing existing cross correlation between Hainan Mining Co and Integrated Electronic Systems, you can compare the effects of market volatilities on Hainan Mining and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Integrated Electronic.
Diversification Opportunities for Hainan Mining and Integrated Electronic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Integrated is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Hainan Mining i.e., Hainan Mining and Integrated Electronic go up and down completely randomly.
Pair Corralation between Hainan Mining and Integrated Electronic
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.66 times more return on investment than Integrated Electronic. However, Hainan Mining Co is 1.51 times less risky than Integrated Electronic. It trades about -0.2 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about -0.14 per unit of risk. If you would invest 744.00 in Hainan Mining Co on October 28, 2024 and sell it today you would lose (59.00) from holding Hainan Mining Co or give up 7.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Integrated Electronic Systems
Performance |
| Timeline |
| Hainan Mining |
| Integrated Electronic |
Hainan Mining and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Integrated Electronic
The main advantage of trading using opposite Hainan Mining and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| Hainan Mining vs. PKU HealthCare Corp | Hainan Mining vs. Chongqing Changan Automobile | Hainan Mining vs. Heren Health Co | Hainan Mining vs. Dongfeng Automobile Co |
| Integrated Electronic vs. Dezhan HealthCare Co | Integrated Electronic vs. Hangzhou Guotai Environmental | Integrated Electronic vs. Anhui Fuhuang Steel | Integrated Electronic vs. De Rucci Healthy |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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