Correlation Between Hainan Mining and Xiamen ITG
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By analyzing existing cross correlation between Hainan Mining Co and Xiamen ITG Group, you can compare the effects of market volatilities on Hainan Mining and Xiamen ITG 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 Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Xiamen ITG.
Diversification Opportunities for Hainan Mining and Xiamen ITG
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Xiamen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group 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 Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Hainan Mining i.e., Hainan Mining and Xiamen ITG go up and down completely randomly.
Pair Corralation between Hainan Mining and Xiamen ITG
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.29 times more return on investment than Xiamen ITG. However, Hainan Mining is 1.29 times more volatile than Xiamen ITG Group. It trades about 0.01 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.0 per unit of risk. If you would invest 707.00 in Hainan Mining Co on September 2, 2024 and sell it today you would lose (4.00) from holding Hainan Mining Co or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Xiamen ITG Group
Performance |
| Timeline |
| Hainan Mining |
| Xiamen ITG Group |
Hainan Mining and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Xiamen ITG
The main advantage of trading using opposite Hainan Mining and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co |
| Xiamen ITG vs. Tibet Huayu Mining | Xiamen ITG vs. Hainan Mining Co | Xiamen ITG vs. Guangzhou Zhujiang Brewery | Xiamen ITG vs. Lander Sports Development |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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