Correlation Between Hainan Mining and RoadMain T
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By analyzing existing cross correlation between Hainan Mining Co and RoadMain T Co, you can compare the effects of market volatilities on Hainan Mining and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and RoadMain T.
Diversification Opportunities for Hainan Mining and RoadMain T
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and RoadMain is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Hainan Mining i.e., Hainan Mining and RoadMain T go up and down completely randomly.
Pair Corralation between Hainan Mining and RoadMain T
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the RoadMain T. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.99 times less risky than RoadMain T. The stock trades about -0.09 of its potential returns per unit of risk. The RoadMain T Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,857 in RoadMain T Co on November 27, 2024 and sell it today you would earn a total of 211.00 from holding RoadMain T Co or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. RoadMain T Co
Performance |
| Timeline |
| Hainan Mining |
| RoadMain T |
Hainan Mining and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and RoadMain T
The main advantage of trading using opposite Hainan Mining and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.| Hainan Mining vs. Beijing Kingsoft Office | Hainan Mining vs. Harson Trading China | Hainan Mining vs. Guangzhou Shangpin Home | Hainan Mining vs. Chengdu Xingrong Investment |
| RoadMain T vs. BrightGene Bio Medical | RoadMain T vs. Fuda Alloy Materials | RoadMain T vs. Innovative Medical Management | RoadMain T vs. GRIPM Advanced Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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