Correlation Between Hainan Mining and Ningbo David
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By analyzing existing cross correlation between Hainan Mining Co and Ningbo David Medical, you can compare the effects of market volatilities on Hainan Mining and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Ningbo David.
Diversification Opportunities for Hainan Mining and Ningbo David
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Hainan Mining i.e., Hainan Mining and Ningbo David go up and down completely randomly.
Pair Corralation between Hainan Mining and Ningbo David
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.21 times more return on investment than Ningbo David. However, Hainan Mining is 1.21 times more volatile than Ningbo David Medical. It trades about 0.07 of its potential returns per unit of risk. Ningbo David Medical is currently generating about -0.04 per unit of risk. If you would invest 730.00 in Hainan Mining Co on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Hainan Mining Co or generate 3.84% 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. Ningbo David Medical
Performance |
| Timeline |
| Hainan Mining |
| Ningbo David Medical |
Hainan Mining and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Ningbo David
The main advantage of trading using opposite Hainan Mining and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
| Ningbo David vs. AVIC Fund Management | Ningbo David vs. TianJin 712 Communication | Ningbo David vs. Guangdong Shenglu Telecommunication | Ningbo David vs. Innovative Medical Management |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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