Correlation Between Hainan Mining and Marssenger Kitchenware
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By analyzing existing cross correlation between Hainan Mining Co and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Hainan Mining and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Marssenger Kitchenware.
Diversification Opportunities for Hainan Mining and Marssenger Kitchenware
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Marssenger is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Hainan Mining i.e., Hainan Mining and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Hainan Mining and Marssenger Kitchenware
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.84 times less return on investment than Marssenger Kitchenware. But when comparing it to its historical volatility, Hainan Mining Co is 1.23 times less risky than Marssenger Kitchenware. It trades about 0.08 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,514 in Marssenger Kitchenware Co on September 13, 2024 and sell it today you would earn a total of 133.00 from holding Marssenger Kitchenware Co or generate 8.78% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Hainan Mining |
| Marssenger Kitchenware |
Hainan Mining and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Marssenger Kitchenware
The main advantage of trading using opposite Hainan Mining and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Hainan Mining vs. Silkroad Visual Technology | Hainan Mining vs. Longjian Road Bridge | Hainan Mining vs. Juneyao Airlines | Hainan Mining vs. Hainan Haiqi Transportation |
| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. China Longyuan Power | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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