Correlation Between Hainan Mining and Guangdong Xiongsu
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By analyzing existing cross correlation between Hainan Mining Co and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Hainan Mining and Guangdong Xiongsu 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 Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangdong Xiongsu.
Diversification Opportunities for Hainan Mining and Guangdong Xiongsu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangdong Xiongsu
Assuming the 90 days trading horizon Hainan Mining is expected to generate 2.57 times less return on investment than Guangdong Xiongsu. But when comparing it to its historical volatility, Hainan Mining Co is 1.4 times less risky than Guangdong Xiongsu. It trades about 0.01 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Guangdong Xiongsu Technology on August 29, 2024 and sell it today you would lose (26.00) from holding Guangdong Xiongsu Technology or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Hainan Mining |
| Guangdong Xiongsu |
Hainan Mining and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangdong Xiongsu
The main advantage of trading using opposite Hainan Mining and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangdong Xiongsu 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 Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| Guangdong Xiongsu vs. Agricultural Bank of | Guangdong Xiongsu vs. Industrial and Commercial | Guangdong Xiongsu vs. Bank of China | Guangdong Xiongsu vs. China Construction Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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