Correlation Between Hainan Mining and Qingdao Port
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By analyzing existing cross correlation between Hainan Mining Co and Qingdao Port International, you can compare the effects of market volatilities on Hainan Mining and Qingdao Port 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 Qingdao Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Qingdao Port.
Diversification Opportunities for Hainan Mining and Qingdao Port
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Qingdao is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Qingdao Port International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Port Interna 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 Qingdao Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Port Interna has no effect on the direction of Hainan Mining i.e., Hainan Mining and Qingdao Port go up and down completely randomly.
Pair Corralation between Hainan Mining and Qingdao Port
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.33 times less return on investment than Qingdao Port. In addition to that, Hainan Mining is 1.44 times more volatile than Qingdao Port International. It trades about 0.04 of its total potential returns per unit of risk. Qingdao Port International is currently generating about 0.07 per unit of volatility. If you would invest 632.00 in Qingdao Port International on September 14, 2024 and sell it today you would earn a total of 214.00 from holding Qingdao Port International or generate 33.86% 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. Qingdao Port International
Performance |
| Timeline |
| Hainan Mining |
| Qingdao Port Interna |
Hainan Mining and Qingdao Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Qingdao Port
The main advantage of trading using opposite Hainan Mining and Qingdao Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Qingdao Port 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 Qingdao Port will offset losses from the drop in Qingdao Port's long position.| Hainan Mining vs. Cowealth Medical China | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Jiangsu Yueda Investment | Hainan Mining vs. Hubei Geoway Investment |
| Qingdao Port vs. Guilin Seamild Foods | Qingdao Port vs. Do Fluoride Chemicals Co | Qingdao Port vs. China Aluminum International | Qingdao Port vs. Shandong Polymer Biochemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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