Correlation Between Jinhui Mining and Wanhua Chemical
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By analyzing existing cross correlation between Jinhui Mining Co and Wanhua Chemical Group, you can compare the effects of market volatilities on Jinhui Mining and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Wanhua Chemical.
Diversification Opportunities for Jinhui Mining and Wanhua Chemical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Wanhua is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Jinhui Mining and Wanhua Chemical
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.29 times more return on investment than Wanhua Chemical. However, Jinhui Mining is 1.29 times more volatile than Wanhua Chemical Group. It trades about 0.02 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.03 per unit of risk. If you would invest 1,183 in Jinhui Mining Co on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Jinhui Mining Co or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Wanhua Chemical Group
Performance |
| Timeline |
| Jinhui Mining |
| Wanhua Chemical Group |
Jinhui Mining and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Wanhua Chemical
The main advantage of trading using opposite Jinhui Mining and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Jinhui Mining vs. Suzhou Douson Drilling | Jinhui Mining vs. Chengdu B ray Media | Jinhui Mining vs. Mango Excellent Media | Jinhui Mining vs. Duzhe Publishing Media |
| Wanhua Chemical vs. Zijin Mining Group | Wanhua Chemical vs. Baoshan Iron Steel | Wanhua Chemical vs. Shandong Gold Mining | Wanhua Chemical vs. Rongsheng Petrochemical 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 Stocks Directory module to find actively traded stocks across global markets.
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