Correlation Between Hainan Mining and China Resources
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By analyzing existing cross correlation between Hainan Mining Co and China Resources Boya, you can compare the effects of market volatilities on Hainan Mining and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and China Resources.
Diversification Opportunities for Hainan Mining and China Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hainan and China is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Hainan Mining i.e., Hainan Mining and China Resources go up and down completely randomly.
Pair Corralation between Hainan Mining and China Resources
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.93 times more return on investment than China Resources. However, Hainan Mining Co is 1.08 times less risky than China Resources. It trades about 0.02 of its potential returns per unit of risk. China Resources Boya is currently generating about 0.0 per unit of risk. If you would invest 700.00 in Hainan Mining Co on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Hainan Mining Co or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. China Resources Boya
Performance |
| Timeline |
| Hainan Mining |
| China Resources Boya |
Hainan Mining and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and China Resources
The main advantage of trading using opposite Hainan Mining and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Hoshine Silicon Ind |
| China Resources vs. Chengdu Kanghua Biological | China Resources vs. Beijing Wantai Biological | China Resources vs. Suzhou Novoprotein Scientific | China Resources vs. Aluminum Corp of |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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