Correlation Between Hainan Mining and Kingsignal Technology
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By analyzing existing cross correlation between Hainan Mining Co and Kingsignal Technology Co, you can compare the effects of market volatilities on Hainan Mining and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Kingsignal Technology.
Diversification Opportunities for Hainan Mining and Kingsignal Technology
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Kingsignal is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Hainan Mining i.e., Hainan Mining and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Hainan Mining and Kingsignal Technology
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.51 times more return on investment than Kingsignal Technology. However, Hainan Mining Co is 1.98 times less risky than Kingsignal Technology. It trades about 0.03 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about -0.01 per unit of risk. If you would invest 697.00 in Hainan Mining Co on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Hainan Mining Co or generate 0.86% 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. Kingsignal Technology Co
Performance |
| Timeline |
| Hainan Mining |
| Kingsignal Technology |
Hainan Mining and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Kingsignal Technology
The main advantage of trading using opposite Hainan Mining and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
| Kingsignal Technology vs. Sinofibers Technology Co | Kingsignal Technology vs. Tianshui Huatian Technology | Kingsignal Technology vs. Hainan Mining Co | Kingsignal Technology vs. Linewell Software Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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