Correlation Between Hainan Mining and Zhuzhou Kibing
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By analyzing existing cross correlation between Hainan Mining Co and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Hainan Mining and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Zhuzhou Kibing.
Diversification Opportunities for Hainan Mining and Zhuzhou Kibing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Zhuzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Hainan Mining i.e., Hainan Mining and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Hainan Mining and Zhuzhou Kibing
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.95 times more return on investment than Zhuzhou Kibing. However, Hainan Mining Co is 1.06 times less risky than Zhuzhou Kibing. It trades about 0.14 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about 0.03 per unit of risk. If you would invest 576.00 in Hainan Mining Co on September 5, 2024 and sell it today you would earn a total of 198.00 from holding Hainan Mining Co or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Hainan Mining |
| Zhuzhou Kibing Group |
Hainan Mining and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Zhuzhou Kibing
The main advantage of trading using opposite Hainan Mining and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Hainan Mining vs. Hangzhou Pinming Software | Hainan Mining vs. Haima Automobile Group | Hainan Mining vs. Zhongtong Guomai Communication | Hainan Mining vs. Wintao Communications Co |
| Zhuzhou Kibing vs. Hainan Mining Co | Zhuzhou Kibing vs. Rising Nonferrous Metals | Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Qingdao Choho Industrial |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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