Correlation Between Jinhui Mining and Wuxi Chemical
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By analyzing existing cross correlation between Jinhui Mining Co and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Jinhui Mining and Wuxi 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 Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Wuxi Chemical.
Diversification Opportunities for Jinhui Mining and Wuxi Chemical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhui and Wuxi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment 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 Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Jinhui Mining and Wuxi Chemical
Assuming the 90 days trading horizon Jinhui Mining Co is expected to under-perform the Wuxi Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Mining Co is 1.3 times less risky than Wuxi Chemical. The stock trades about -0.05 of its potential returns per unit of risk. The Wuxi Chemical Equipment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,550 in Wuxi Chemical Equipment on October 25, 2024 and sell it today you would lose (25.00) from holding Wuxi Chemical Equipment or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Jinhui Mining |
| Wuxi Chemical Equipment |
Jinhui Mining and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Wuxi Chemical
The main advantage of trading using opposite Jinhui Mining and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Wuxi 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Rongsheng Petrochemical Co |
| Wuxi Chemical vs. Shanghai Construction Group | Wuxi Chemical vs. Tederic Machinery Co | Wuxi Chemical vs. Tonghua Grape Wine | Wuxi Chemical vs. Nanxing Furniture Machinery |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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