Correlation Between Sichuan Hebang and Hainan Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Hainan Mining Co, you can compare the effects of market volatilities on Sichuan Hebang and Hainan Mining 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 Sichuan Hebang with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Hainan Mining.
Diversification Opportunities for Sichuan Hebang and Hainan Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Hainan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Hainan Mining go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Hainan Mining
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the Hainan Mining. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 1.26 times less risky than Hainan Mining. The stock trades about -0.3 of its potential returns per unit of risk. The Hainan Mining Co is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Hainan Mining Co on October 29, 2024 and sell it today you would lose (41.00) from holding Hainan Mining Co or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Hainan Mining Co
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Hainan Mining |
Sichuan Hebang and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Hainan Mining
The main advantage of trading using opposite Sichuan Hebang and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Sichuan Hebang vs. Sichuan Fulin Transportation | Sichuan Hebang vs. Meinian Onehealth Healthcare | Sichuan Hebang vs. Lander Sports Development | Sichuan Hebang vs. Heren Health Co |
| Hainan Mining vs. PKU HealthCare Corp | Hainan Mining vs. Chongqing Changan Automobile | Hainan Mining vs. Heren Health Co | Hainan Mining vs. Dongfeng Automobile 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |