Correlation Between Hainan Mining and Guangzhou Jinyi
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By analyzing existing cross correlation between Hainan Mining Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Hainan Mining and Guangzhou Jinyi 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 Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangzhou Jinyi.
Diversification Opportunities for Hainan Mining and Guangzhou Jinyi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Guangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangzhou Jinyi
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.52 times less risky than Guangzhou Jinyi. The stock trades about -0.01 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Guangzhou Jinyi Media on October 16, 2024 and sell it today you would lose (219.00) from holding Guangzhou Jinyi Media or give up 24.39% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Hainan Mining |
| Guangzhou Jinyi Media |
Hainan Mining and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangzhou Jinyi
The main advantage of trading using opposite Hainan Mining and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Hainan Mining vs. Zhongfu Information | Hainan Mining vs. Leyard Optoelectronic | Hainan Mining vs. Hygon Information Technology | Hainan Mining vs. CITIC Guoan Information |
| Guangzhou Jinyi vs. Uroica Mining Safety | Guangzhou Jinyi vs. Hainan Mining Co | Guangzhou Jinyi vs. Shenzhen AV Display Co | Guangzhou Jinyi vs. Chengtun Mining Group |
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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