Correlation Between Hainan Mining and Yankershop Food
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By analyzing existing cross correlation between Hainan Mining Co and Yankershop Food Co, you can compare the effects of market volatilities on Hainan Mining and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Yankershop Food.
Diversification Opportunities for Hainan Mining and Yankershop Food
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Yankershop is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Hainan Mining i.e., Hainan Mining and Yankershop Food go up and down completely randomly.
Pair Corralation between Hainan Mining and Yankershop Food
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.88 times less return on investment than Yankershop Food. But when comparing it to its historical volatility, Hainan Mining Co is 1.03 times less risky than Yankershop Food. It trades about 0.01 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,749 in Yankershop Food Co on September 2, 2024 and sell it today you would earn a total of 432.00 from holding Yankershop Food Co or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Yankershop Food Co
Performance |
| Timeline |
| Hainan Mining |
| Yankershop Food |
Hainan Mining and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Yankershop Food
The main advantage of trading using opposite Hainan Mining and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co |
| Yankershop Food vs. Guangzhou Boji Medical | Yankershop Food vs. Shenzhen Kexin Communication | Yankershop Food vs. Wuhan Yangtze Communication | Yankershop Food vs. Jilin Jlu Communication |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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