Correlation Between Jinhui Mining and Ningbo Jianan
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By analyzing existing cross correlation between Jinhui Mining Co and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Jinhui Mining and Ningbo Jianan 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 Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Ningbo Jianan.
Diversification Opportunities for Jinhui Mining and Ningbo Jianan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Ningbo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Jinhui Mining and Ningbo Jianan
Assuming the 90 days trading horizon Jinhui Mining is expected to generate 7.16 times less return on investment than Ningbo Jianan. But when comparing it to its historical volatility, Jinhui Mining Co is 1.51 times less risky than Ningbo Jianan. It trades about 0.03 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,148 in Ningbo Jianan Electronics on December 4, 2024 and sell it today you would earn a total of 102.00 from holding Ningbo Jianan Electronics or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Jinhui Mining |
| Ningbo Jianan Electronics |
Jinhui Mining and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Ningbo Jianan
The main advantage of trading using opposite Jinhui Mining and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Ningbo Jianan 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 Jianan will offset losses from the drop in Ningbo Jianan's long position.| Jinhui Mining vs. Yankershop Food Co | Jinhui Mining vs. Springsnow Food Group | Jinhui Mining vs. Chengdu B ray Media | Jinhui Mining vs. TVZone Media Co |
| Ningbo Jianan vs. GRINM Semiconductor Materials | Ningbo Jianan vs. Southchip Semiconductor Technology | Ningbo Jianan vs. Hubei Tech Semiconductors | Ningbo Jianan vs. BTG Hotels Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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