Correlation Between Jinhui Mining and Cangzhou Mingzhu
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By analyzing existing cross correlation between Jinhui Mining Co and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Jinhui Mining and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Cangzhou Mingzhu.
Diversification Opportunities for Jinhui Mining and Cangzhou Mingzhu
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Cangzhou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Jinhui Mining and Cangzhou Mingzhu
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.91 times more return on investment than Cangzhou Mingzhu. However, Jinhui Mining Co is 1.1 times less risky than Cangzhou Mingzhu. It trades about -0.06 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.26 per unit of risk. If you would invest 1,160 in Jinhui Mining Co on October 28, 2024 and sell it today you would lose (21.00) from holding Jinhui Mining Co or give up 1.81% 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. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Jinhui Mining |
| Cangzhou Mingzhu Plastic |
Jinhui Mining and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Cangzhou Mingzhu
The main advantage of trading using opposite Jinhui Mining and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Jinhui Mining vs. North Copper Shanxi | Jinhui Mining vs. Shandong Rike Chemical | Jinhui Mining vs. Ningbo Jintian Copper | Jinhui Mining vs. Rising Nonferrous Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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