Correlation Between Hainan Mining and Beijing Ultrapower
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By analyzing existing cross correlation between Hainan Mining Co and Beijing Ultrapower Software, you can compare the effects of market volatilities on Hainan Mining and Beijing Ultrapower 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 Beijing Ultrapower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Beijing Ultrapower.
Diversification Opportunities for Hainan Mining and Beijing Ultrapower
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Beijing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Beijing Ultrapower Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Ultrapower 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 Beijing Ultrapower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Ultrapower has no effect on the direction of Hainan Mining i.e., Hainan Mining and Beijing Ultrapower go up and down completely randomly.
Pair Corralation between Hainan Mining and Beijing Ultrapower
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.41 times more return on investment than Beijing Ultrapower. However, Hainan Mining is 1.41 times more volatile than Beijing Ultrapower Software. It trades about 0.1 of its potential returns per unit of risk. Beijing Ultrapower Software is currently generating about 0.01 per unit of risk. If you would invest 703.00 in Hainan Mining Co on September 29, 2024 and sell it today you would earn a total of 41.00 from holding Hainan Mining Co or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hainan Mining Co vs. Beijing Ultrapower Software
Performance |
| Timeline |
| Hainan Mining |
| Beijing Ultrapower |
Hainan Mining and Beijing Ultrapower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Beijing Ultrapower
The main advantage of trading using opposite Hainan Mining and Beijing Ultrapower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Beijing Ultrapower 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 Beijing Ultrapower will offset losses from the drop in Beijing Ultrapower's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| Beijing Ultrapower vs. Ming Yang Smart | Beijing Ultrapower vs. 159681 | Beijing Ultrapower vs. 159005 | Beijing Ultrapower vs. Loctek Ergonomic Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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