Correlation Between Hainan Mining and Minmetals Capital
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By analyzing existing cross correlation between Hainan Mining Co and Minmetals Capital Co, you can compare the effects of market volatilities on Hainan Mining and Minmetals Capital 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 Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Minmetals Capital.
Diversification Opportunities for Hainan Mining and Minmetals Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Minmetals is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital 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 Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Hainan Mining i.e., Hainan Mining and Minmetals Capital go up and down completely randomly.
Pair Corralation between Hainan Mining and Minmetals Capital
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.21 times more return on investment than Minmetals Capital. However, Hainan Mining is 1.21 times more volatile than Minmetals Capital Co. It trades about 0.08 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about -0.21 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. Minmetals Capital Co
Performance |
| Timeline |
| Hainan Mining |
| Minmetals Capital |
Hainan Mining and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Minmetals Capital
The main advantage of trading using opposite Hainan Mining and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital'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 |
| Minmetals Capital vs. Ming Yang Smart | Minmetals Capital vs. 159681 | Minmetals Capital vs. 159005 | Minmetals Capital vs. Loctek Ergonomic Technology |
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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