Correlation Between Hainan Mining and Guangdong Silvere
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By analyzing existing cross correlation between Hainan Mining Co and Guangdong Silvere Sci, you can compare the effects of market volatilities on Hainan Mining and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangdong Silvere.
Diversification Opportunities for Hainan Mining and Guangdong Silvere
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Guangdong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangdong Silvere
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Guangdong Silvere. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.71 times less risky than Guangdong Silvere. The stock trades about -0.26 of its potential returns per unit of risk. The Guangdong Silvere Sci is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 599.00 in Guangdong Silvere Sci on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Silvere Sci or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Hainan Mining |
| Guangdong Silvere Sci |
Hainan Mining and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangdong Silvere
The main advantage of trading using opposite Hainan Mining and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Hainan Mining vs. Dongfeng Automobile Co | Hainan Mining vs. Central Plains Environment | Hainan Mining vs. Fujian Nanwang Environment | Hainan Mining vs. Baoshan Iron Steel |
| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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