Correlation Between Hainan Mining and Guangxi Wuzhou
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By analyzing existing cross correlation between Hainan Mining Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Hainan Mining and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Guangxi Wuzhou.
Diversification Opportunities for Hainan Mining and Guangxi Wuzhou
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hainan and Guangxi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Hainan Mining i.e., Hainan Mining and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Hainan Mining and Guangxi Wuzhou
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Guangxi Wuzhou. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.04 times less risky than Guangxi Wuzhou. The stock trades about -0.01 of its potential returns per unit of risk. The Guangxi Wuzhou Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Guangxi Wuzhou Communications or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Hainan Mining |
| Guangxi Wuzhou Commu |
Hainan Mining and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Guangxi Wuzhou
The main advantage of trading using opposite Hainan Mining and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Hainan Mining vs. Guilin Seamild Foods | Hainan Mining vs. Jiajia Food Group | Hainan Mining vs. New Hope Dairy | Hainan Mining vs. Gansu Huangtai Wine marketing |
| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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