Correlation Between Jinhui Mining and Xinjiang Tianshun
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By analyzing existing cross correlation between Jinhui Mining Co and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Jinhui Mining and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Xinjiang Tianshun.
Diversification Opportunities for Jinhui Mining and Xinjiang Tianshun
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Xinjiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Jinhui Mining and Xinjiang Tianshun
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.56 times more return on investment than Xinjiang Tianshun. However, Jinhui Mining Co is 1.78 times less risky than Xinjiang Tianshun. It trades about -0.05 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.08 per unit of risk. If you would invest 1,197 in Jinhui Mining Co on October 24, 2024 and sell it today you would lose (66.00) from holding Jinhui Mining Co or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Jinhui Mining Co vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Jinhui Mining |
| Xinjiang Tianshun Supply |
Jinhui Mining and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Xinjiang Tianshun
The main advantage of trading using opposite Jinhui Mining and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Jinhui Mining vs. Jinhui Liquor Co | Jinhui Mining vs. Hubeiyichang Transportation Group | Jinhui Mining vs. Shanghai Broadband Technology | Jinhui Mining vs. Chengdu Xinzhu RoadBridge |
| Xinjiang Tianshun vs. Duzhe Publishing Media | Xinjiang Tianshun vs. Jiangsu Phoenix Publishing | Xinjiang Tianshun vs. Shenzhen Noposion Agrochemicals | Xinjiang Tianshun vs. Miracll Chemicals 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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