Correlation Between Hainan Mining and SSAW Hotels
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By analyzing existing cross correlation between Hainan Mining Co and SSAW Hotels Resorts, you can compare the effects of market volatilities on Hainan Mining and SSAW Hotels 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 SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and SSAW Hotels.
Diversification Opportunities for Hainan Mining and SSAW Hotels
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and SSAW is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts 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 SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Hainan Mining i.e., Hainan Mining and SSAW Hotels go up and down completely randomly.
Pair Corralation between Hainan Mining and SSAW Hotels
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the SSAW Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.82 times less risky than SSAW Hotels. The stock trades about -0.57 of its potential returns per unit of risk. The SSAW Hotels Resorts is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 2,436 in SSAW Hotels Resorts on October 18, 2024 and sell it today you would lose (428.00) from holding SSAW Hotels Resorts or give up 17.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. SSAW Hotels Resorts
Performance |
| Timeline |
| Hainan Mining |
| SSAW Hotels Resorts |
Hainan Mining and SSAW Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and SSAW Hotels
The main advantage of trading using opposite Hainan Mining and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.| Hainan Mining vs. King Strong New Material | Hainan Mining vs. Iat Automobile Technology | Hainan Mining vs. Fuda Alloy Materials | Hainan Mining vs. Hangzhou Gaoxin Rubber |
| SSAW Hotels vs. Tianshan Aluminum Group | SSAW Hotels vs. Chengtun Mining Group | SSAW Hotels vs. Anhui Tongguan Copper | SSAW Hotels vs. Hainan Mining Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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