Correlation Between Hainan Mining and Yonyou Auto
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By analyzing existing cross correlation between Hainan Mining Co and Yonyou Auto Information, you can compare the effects of market volatilities on Hainan Mining and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Yonyou Auto.
Diversification Opportunities for Hainan Mining and Yonyou Auto
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Yonyou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Hainan Mining i.e., Hainan Mining and Yonyou Auto go up and down completely randomly.
Pair Corralation between Hainan Mining and Yonyou Auto
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.11 times more return on investment than Yonyou Auto. However, Hainan Mining is 1.11 times more volatile than Yonyou Auto Information. It trades about -0.05 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.06 per unit of risk. If you would invest 741.00 in Hainan Mining Co on November 6, 2024 and sell it today you would lose (63.00) from holding Hainan Mining Co or give up 8.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Yonyou Auto Information
Performance |
| Timeline |
| Hainan Mining |
| Yonyou Auto Information |
Hainan Mining and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Yonyou Auto
The main advantage of trading using opposite Hainan Mining and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
| Yonyou Auto vs. Kangping Technology Co | Yonyou Auto vs. Olympic Circuit Technology | Yonyou Auto vs. Sharetronic Data Technology | Yonyou Auto vs. Eyebright Medical Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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