Correlation Between Hainan Mining and DO Home
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By analyzing existing cross correlation between Hainan Mining Co and DO Home Collection, you can compare the effects of market volatilities on Hainan Mining and DO Home 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 DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and DO Home.
Diversification Opportunities for Hainan Mining and DO Home
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and 002798 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection 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 DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Hainan Mining i.e., Hainan Mining and DO Home go up and down completely randomly.
Pair Corralation between Hainan Mining and DO Home
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.42 times more return on investment than DO Home. However, Hainan Mining Co is 2.41 times less risky than DO Home. It trades about -0.31 of its potential returns per unit of risk. DO Home Collection is currently generating about -0.21 per unit of risk. If you would invest 782.00 in Hainan Mining Co on October 17, 2024 and sell it today you would lose (111.00) from holding Hainan Mining Co or give up 14.19% 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. DO Home Collection
Performance |
| Timeline |
| Hainan Mining |
| DO Home Collection |
Hainan Mining and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and DO Home
The main advantage of trading using opposite Hainan Mining and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Hainan Mining vs. King Strong New Material | Hainan Mining vs. Iat Automobile Technology | Hainan Mining vs. Fuda Alloy Materials | Hainan Mining vs. Hangzhou Gaoxin Rubber |
| DO Home vs. Tangel Publishing | DO Home vs. FSPG Hi Tech Co | DO Home vs. Fiberhome Telecommunication Technologies | DO Home vs. Zhongshan Public Utilities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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