Correlation Between Hainan Mining and Guangzhou Tinci
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By analyzing existing cross correlation between Hainan Mining Co and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Hainan Mining and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangzhou Tinci.
Diversification Opportunities for Hainan Mining and Guangzhou Tinci
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Guangzhou is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangzhou Tinci
Assuming the 90 days trading horizon Hainan Mining is expected to generate 2.1 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Hainan Mining Co is 1.41 times less risky than Guangzhou Tinci. It trades about 0.07 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,424 in Guangzhou Tinci Materials on October 24, 2024 and sell it today you would earn a total of 451.00 from holding Guangzhou Tinci Materials or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Hainan Mining |
| Guangzhou Tinci Materials |
Hainan Mining and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangzhou Tinci
The main advantage of trading using opposite Hainan Mining and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Hainan Mining vs. East Money Information | Hainan Mining vs. Invengo Information Technology | Hainan Mining vs. Thunder Software Technology | Hainan Mining vs. Tongding Interconnection Information |
| Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Guangzhou Haozhi Industrial | Guangzhou Tinci vs. Hengli Industrial Development | Guangzhou Tinci 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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