Correlation Between Jinhui Mining and Jilin Chemical
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By analyzing existing cross correlation between Jinhui Mining Co and Jilin Chemical Fibre, you can compare the effects of market volatilities on Jinhui Mining and Jilin Chemical 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 Jinhui Mining with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Jilin Chemical.
Diversification Opportunities for Jinhui Mining and Jilin Chemical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Jilin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Jinhui 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 Jinhui Mining Co are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Jilin Chemical go up and down completely randomly.
Pair Corralation between Jinhui Mining and Jilin Chemical
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.79 times more return on investment than Jilin Chemical. However, Jinhui Mining Co is 1.26 times less risky than Jilin Chemical. It trades about 0.0 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.02 per unit of risk. If you would invest 1,239 in Jinhui Mining Co on October 16, 2024 and sell it today you would lose (115.00) from holding Jinhui Mining Co or give up 9.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Jinhui Mining |
| Jilin Chemical Fibre |
Jinhui Mining and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Jilin Chemical
The main advantage of trading using opposite Jinhui Mining and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Jinhui Mining vs. Lutian Machinery Co | Jinhui Mining vs. Shenzhen Centralcon Investment | Jinhui Mining vs. Ningbo Construction Co | Jinhui Mining vs. Chengdu Xingrong Investment |
| Jilin Chemical vs. Jinhui Mining Co | Jilin Chemical vs. Everjoy Health Group | Jilin Chemical vs. Shenyang Blue Silver | Jilin Chemical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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