Correlation Between Jinhui Mining and Ningbo Ligong
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By analyzing existing cross correlation between Jinhui Mining Co and Ningbo Ligong Online, you can compare the effects of market volatilities on Jinhui Mining and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Ningbo Ligong.
Diversification Opportunities for Jinhui Mining and Ningbo Ligong
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhui and Ningbo is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Jinhui Mining and Ningbo Ligong
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.18 times more return on investment than Ningbo Ligong. However, Jinhui Mining is 1.18 times more volatile than Ningbo Ligong Online. It trades about -0.11 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.18 per unit of risk. If you would invest 1,232 in Jinhui Mining Co on August 29, 2024 and sell it today you would lose (65.00) from holding Jinhui Mining Co or give up 5.28% 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. Ningbo Ligong Online
Performance |
| Timeline |
| Jinhui Mining |
| Ningbo Ligong Online |
Jinhui Mining and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Ningbo Ligong
The main advantage of trading using opposite Jinhui Mining and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Jinhui Mining vs. Panda Financial Holding | Jinhui Mining vs. Gome Telecom Equipment | Jinhui Mining vs. Guangdong Qunxing Toys | Jinhui Mining vs. China Everbright Bank |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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