Correlation Between Jinhui Mining and Chongqing Brewery
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By analyzing existing cross correlation between Jinhui Mining Co and Chongqing Brewery Co, you can compare the effects of market volatilities on Jinhui Mining and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Chongqing Brewery.
Diversification Opportunities for Jinhui Mining and Chongqing Brewery
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Chongqing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Jinhui Mining and Chongqing Brewery
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.95 times more return on investment than Chongqing Brewery. However, Jinhui Mining Co is 1.06 times less risky than Chongqing Brewery. It trades about -0.03 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.51 per unit of risk. If you would invest 1,152 in Jinhui Mining Co on October 29, 2024 and sell it today you would lose (13.00) from holding Jinhui Mining Co or give up 1.13% 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. Chongqing Brewery Co
Performance |
| Timeline |
| Jinhui Mining |
| Chongqing Brewery |
Jinhui Mining and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Chongqing Brewery
The main advantage of trading using opposite Jinhui Mining and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery'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 |
| Chongqing Brewery vs. Dongfeng Automobile Co | Chongqing Brewery vs. BrightGene Bio Medical | Chongqing Brewery vs. Nanjing Putian Telecommunications | Chongqing Brewery vs. Winner Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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