Correlation Between Jinhui Mining and Shandong Mining
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By analyzing existing cross correlation between Jinhui Mining Co and Shandong Mining Machinery, you can compare the effects of market volatilities on Jinhui Mining and Shandong 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 Jinhui Mining with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Shandong Mining.
Diversification Opportunities for Jinhui Mining and Shandong Mining
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Shandong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Shandong Mining go up and down completely randomly.
Pair Corralation between Jinhui Mining and Shandong Mining
Assuming the 90 days trading horizon Jinhui Mining Co is expected to under-perform the Shandong Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Mining Co is 2.01 times less risky than Shandong Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Shandong Mining Machinery is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Shandong Mining Machinery on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Shandong Mining Machinery or generate 20.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Shandong Mining Machinery
Performance |
| Timeline |
| Jinhui Mining |
| Shandong Mining Machinery |
Jinhui Mining and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Shandong Mining
The main advantage of trading using opposite Jinhui Mining and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Shandong 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Rongsheng Petrochemical Co | Jinhui Mining vs. Hoshine Silicon Ind |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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