Correlation Between Hainan Mining and Guilin Seamild
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By analyzing existing cross correlation between Hainan Mining Co and Guilin Seamild Foods, you can compare the effects of market volatilities on Hainan Mining and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guilin Seamild.
Diversification Opportunities for Hainan Mining and Guilin Seamild
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Guilin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guilin Seamild go up and down completely randomly.
Pair Corralation between Hainan Mining and Guilin Seamild
Assuming the 90 days trading horizon Hainan Mining is expected to generate 16.74 times less return on investment than Guilin Seamild. But when comparing it to its historical volatility, Hainan Mining Co is 1.2 times less risky than Guilin Seamild. It trades about 0.02 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,281 in Guilin Seamild Foods on September 2, 2024 and sell it today you would earn a total of 175.00 from holding Guilin Seamild Foods or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Guilin Seamild Foods
Performance |
| Timeline |
| Hainan Mining |
| Guilin Seamild Foods |
Hainan Mining and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guilin Seamild
The main advantage of trading using opposite Hainan Mining and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild'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 |
| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Shenzhen Hifuture Electric | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Shenyang Huitian Thermal |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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