Correlation Between Hainan Mining and Shandong Sanyuan
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By analyzing existing cross correlation between Hainan Mining Co and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Hainan Mining and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Shandong Sanyuan.
Diversification Opportunities for Hainan Mining and Shandong Sanyuan
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Shandong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Hainan Mining i.e., Hainan Mining and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Hainan Mining and Shandong Sanyuan
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Shandong Sanyuan. In addition to that, Hainan Mining is 1.03 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.14 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.08 per unit of volatility. If you would invest 2,793 in Shandong Sanyuan Biotechnology on November 1, 2024 and sell it today you would lose (192.00) from holding Shandong Sanyuan Biotechnology or give up 6.87% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Hainan Mining |
| Shandong Sanyuan Bio |
Hainan Mining and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Shandong Sanyuan
The main advantage of trading using opposite Hainan Mining and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Hainan Mining vs. Bank of Suzhou | Hainan Mining vs. Nantong Haixing Electronics | Hainan Mining vs. Epoxy Base Electronic | Hainan Mining vs. Lecron Energy Saving |
| Shandong Sanyuan vs. Hainan Mining Co | Shandong Sanyuan vs. Wuhan Hvsen Biotechnology | Shandong Sanyuan vs. Ningbo MedicalSystem Biotechnology | Shandong Sanyuan vs. Soochow Suzhou Industrial |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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