Correlation Between Hainan Mining and Dongnan Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Dongnan Electronics Co, you can compare the effects of market volatilities on Hainan Mining and Dongnan Electronics 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 Dongnan Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Dongnan Electronics.
Diversification Opportunities for Hainan Mining and Dongnan Electronics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Dongnan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Dongnan Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongnan Electronics 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 Dongnan Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongnan Electronics has no effect on the direction of Hainan Mining i.e., Hainan Mining and Dongnan Electronics go up and down completely randomly.
Pair Corralation between Hainan Mining and Dongnan Electronics
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.16 times more return on investment than Dongnan Electronics. However, Hainan Mining is 1.16 times more volatile than Dongnan Electronics Co. It trades about 0.08 of its potential returns per unit of risk. Dongnan Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 725.00 in Hainan Mining Co on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Hainan Mining Co or generate 4.55% 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. Dongnan Electronics Co
Performance |
| Timeline |
| Hainan Mining |
| Dongnan Electronics |
Hainan Mining and Dongnan Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Dongnan Electronics
The main advantage of trading using opposite Hainan Mining and Dongnan Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Dongnan Electronics 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 Dongnan Electronics will offset losses from the drop in Dongnan Electronics' 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 |
| Dongnan Electronics vs. Mingchen Health Co | Dongnan Electronics vs. Shenzhen Silver Basis | Dongnan Electronics vs. Lotus Health Group | Dongnan Electronics vs. Hangzhou Coco Healthcare |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |