Correlation Between Hainan Mining and Liaoning Dingjide
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By analyzing existing cross correlation between Hainan Mining Co and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Hainan Mining and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Liaoning Dingjide.
Diversification Opportunities for Hainan Mining and Liaoning Dingjide
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Liaoning is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Hainan Mining i.e., Hainan Mining and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Hainan Mining and Liaoning Dingjide
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.8 times more return on investment than Liaoning Dingjide. However, Hainan Mining Co is 1.24 times less risky than Liaoning Dingjide. It trades about -0.01 of its potential returns per unit of risk. Liaoning Dingjide Petrochemical is currently generating about -0.02 per unit of risk. If you would invest 784.00 in Hainan Mining Co on October 11, 2024 and sell it today you would lose (130.00) from holding Hainan Mining Co or give up 16.58% 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. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Hainan Mining |
| Liaoning Dingjide |
Hainan Mining and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Liaoning Dingjide
The main advantage of trading using opposite Hainan Mining and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Hainan Mining vs. Guangxi Wuzhou Communications | Hainan Mining vs. Anhui Huilong Agricultural | Hainan Mining vs. Fiberhome Telecommunication Technologies | Hainan Mining vs. Dongfeng Automobile Co |
| Liaoning Dingjide vs. Xinjiang Baodi Mining | Liaoning Dingjide vs. Jiangxi Naipu Mining | Liaoning Dingjide vs. Hainan Mining Co | Liaoning Dingjide vs. Gem Year Industrial Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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