Correlation Between Hainan Mining and Xinya Electronic
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By analyzing existing cross correlation between Hainan Mining Co and Xinya Electronic Co, you can compare the effects of market volatilities on Hainan Mining and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Xinya Electronic.
Diversification Opportunities for Hainan Mining and Xinya Electronic
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Xinya is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Hainan Mining i.e., Hainan Mining and Xinya Electronic go up and down completely randomly.
Pair Corralation between Hainan Mining and Xinya Electronic
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 2.57 times less risky than Xinya Electronic. The stock trades about -0.2 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,578 in Xinya Electronic Co on October 25, 2024 and sell it today you would earn a total of 70.00 from holding Xinya Electronic Co or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Xinya Electronic Co
Performance |
| Timeline |
| Hainan Mining |
| Xinya Electronic |
Hainan Mining and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Xinya Electronic
The main advantage of trading using opposite Hainan Mining and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
| Xinya Electronic vs. Easyhome New Retail | Xinya Electronic vs. Shengda Mining Co | Xinya Electronic vs. Oppein Home Group | Xinya Electronic vs. Hainan Mining 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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