Correlation Between Hainan Mining and Xinjiang Baodi
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By analyzing existing cross correlation between Hainan Mining Co and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Hainan Mining and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Xinjiang Baodi.
Diversification Opportunities for Hainan Mining and Xinjiang Baodi
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Xinjiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Hainan Mining i.e., Hainan Mining and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Hainan Mining and Xinjiang Baodi
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.72 times less risky than Xinjiang Baodi. The stock trades about -0.26 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Xinjiang Baodi Mining on October 23, 2024 and sell it today you would lose (38.00) from holding Xinjiang Baodi Mining or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Hainan Mining |
| Xinjiang Baodi Mining |
Hainan Mining and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Xinjiang Baodi
The main advantage of trading using opposite Hainan Mining and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Hainan Mining vs. Dongfeng Automobile Co | Hainan Mining vs. Central Plains Environment | Hainan Mining vs. Fujian Nanwang Environment | Hainan Mining vs. Baoshan Iron Steel |
| Xinjiang Baodi vs. Eastern Communications Co | Xinjiang Baodi vs. Wuhan Yangtze Communication | Xinjiang Baodi vs. Fujian Newland Computer | Xinjiang Baodi vs. Kuang Chi Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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