Correlation Between Hainan Mining and Gem Year
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Hainan Mining and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Gem Year.
Diversification Opportunities for Hainan Mining and Gem Year
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Gem is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Hainan Mining i.e., Hainan Mining and Gem Year go up and down completely randomly.
Pair Corralation between Hainan Mining and Gem Year
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.05 times more return on investment than Gem Year. However, Hainan Mining is 1.05 times more volatile than Gem Year Industrial Co. It trades about 0.01 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 714.00 in Hainan Mining Co on August 29, 2024 and sell it today you would lose (29.00) from holding Hainan Mining Co or give up 4.06% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Hainan Mining |
| Gem Year Industrial |
Hainan Mining and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Gem Year
The main advantage of trading using opposite Hainan Mining and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| Gem Year vs. Industrial and Commercial | Gem Year vs. Agricultural Bank of | Gem Year vs. China Construction Bank | Gem Year vs. Bank of China |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |