Correlation Between Hainan Mining and Zhongtong Guomai
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By analyzing existing cross correlation between Hainan Mining Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Hainan Mining and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Zhongtong Guomai.
Diversification Opportunities for Hainan Mining and Zhongtong Guomai
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hainan and Zhongtong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Hainan Mining i.e., Hainan Mining and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Hainan Mining and Zhongtong Guomai
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.64 times more return on investment than Zhongtong Guomai. However, Hainan Mining Co is 1.55 times less risky than Zhongtong Guomai. It trades about 0.0 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.01 per unit of risk. If you would invest 746.00 in Hainan Mining Co on November 28, 2024 and sell it today you would lose (72.00) from holding Hainan Mining Co or give up 9.65% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Hainan Mining |
| Zhongtong Guomai Com |
Hainan Mining and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Zhongtong Guomai
The main advantage of trading using opposite Hainan Mining and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Hainan Mining vs. Penyao Environmental Protection | Hainan Mining vs. Changjiang Jinggong Steel | Hainan Mining vs. Tibet Huayu Mining | Hainan Mining vs. Guangdong Jingyi Metal |
| Zhongtong Guomai vs. Cicc Fund Management | Zhongtong Guomai vs. Xiamen Insight Investment | Zhongtong Guomai vs. Hubei Geoway Investment | Zhongtong Guomai vs. Postal Savings Bank |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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