Correlation Between Hainan Mining and Tianjin Silvery
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By analyzing existing cross correlation between Hainan Mining Co and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Hainan Mining and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Tianjin Silvery.
Diversification Opportunities for Hainan Mining and Tianjin Silvery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Tianjin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Hainan Mining i.e., Hainan Mining and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Hainan Mining and Tianjin Silvery
Assuming the 90 days trading horizon Hainan Mining is expected to generate 2.27 times less return on investment than Tianjin Silvery. But when comparing it to its historical volatility, Hainan Mining Co is 1.16 times less risky than Tianjin Silvery. It trades about 0.11 of its potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Tianjin Silvery Dragon on September 27, 2024 and sell it today you would earn a total of 96.00 from holding Tianjin Silvery Dragon or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Hainan Mining |
| Tianjin Silvery Dragon |
Hainan Mining and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Tianjin Silvery
The main advantage of trading using opposite Hainan Mining and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Hainan Mining vs. TianJin 712 Communication | Hainan Mining vs. Ningbo Construction Co | Hainan Mining vs. Tjk Machinery Tianjin | Hainan Mining vs. Eastern Communications Co |
| Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co | Tianjin Silvery vs. Inner Mongolia BaoTou |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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