Correlation Between Hainan Mining and Fujian Boss
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By analyzing existing cross correlation between Hainan Mining Co and Fujian Boss Software, you can compare the effects of market volatilities on Hainan Mining and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Fujian Boss.
Diversification Opportunities for Hainan Mining and Fujian Boss
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Hainan Mining i.e., Hainan Mining and Fujian Boss go up and down completely randomly.
Pair Corralation between Hainan Mining and Fujian Boss
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.76 times more return on investment than Fujian Boss. However, Hainan Mining Co is 1.31 times less risky than Fujian Boss. It trades about 0.17 of its potential returns per unit of risk. Fujian Boss Software is currently generating about 0.12 per unit of risk. If you would invest 700.00 in Hainan Mining Co on September 5, 2024 and sell it today you would earn a total of 74.00 from holding Hainan Mining Co or generate 10.57% 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. Fujian Boss Software
Performance |
| Timeline |
| Hainan Mining |
| Fujian Boss Software |
Hainan Mining and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Fujian Boss
The main advantage of trading using opposite Hainan Mining and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Hainan Mining vs. Hangzhou Pinming Software | Hainan Mining vs. Haima Automobile Group | Hainan Mining vs. Zhongtong Guomai Communication | Hainan Mining vs. Wintao Communications Co |
| Fujian Boss vs. Guangdong Jinma Entertainment | Fujian Boss vs. Hainan Mining Co | Fujian Boss vs. JiShi Media Co | Fujian Boss vs. Ye Chiu Metal |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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