Correlation Between Hainan Mining and Niutech Environment
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By analyzing existing cross correlation between Hainan Mining Co and Niutech Environment Technology, you can compare the effects of market volatilities on Hainan Mining and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Niutech Environment.
Diversification Opportunities for Hainan Mining and Niutech Environment
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Niutech is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Hainan Mining i.e., Hainan Mining and Niutech Environment go up and down completely randomly.
Pair Corralation between Hainan Mining and Niutech Environment
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.74 times more return on investment than Niutech Environment. However, Hainan Mining Co is 1.35 times less risky than Niutech Environment. It trades about 0.02 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.04 per unit of risk. If you would invest 672.00 in Hainan Mining Co on August 27, 2024 and sell it today you would earn a total of 13.00 from holding Hainan Mining Co or generate 1.93% 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. Niutech Environment Technology
Performance |
| Timeline |
| Hainan Mining |
| Niutech Environment |
Hainan Mining and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Niutech Environment
The main advantage of trading using opposite Hainan Mining and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
| Niutech Environment vs. Ningbo Construction Co | Niutech Environment vs. GRINM Semiconductor Materials | Niutech Environment vs. Shenzhen Glory Medical | Niutech Environment vs. StarPower Semiconductor |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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