Correlation Between Jinhui Mining and China Enterprise
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By analyzing existing cross correlation between Jinhui Mining Co and China Enterprise Co, you can compare the effects of market volatilities on Jinhui Mining and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and China Enterprise.
Diversification Opportunities for Jinhui Mining and China Enterprise
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and China Enterprise go up and down completely randomly.
Pair Corralation between Jinhui Mining and China Enterprise
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.9 times more return on investment than China Enterprise. However, Jinhui Mining Co is 1.12 times less risky than China Enterprise. It trades about -0.08 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.38 per unit of risk. If you would invest 1,154 in Jinhui Mining Co on October 19, 2024 and sell it today you would lose (31.00) from holding Jinhui Mining Co or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. China Enterprise Co
Performance |
| Timeline |
| Jinhui Mining |
| China Enterprise |
Jinhui Mining and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and China Enterprise
The main advantage of trading using opposite Jinhui Mining and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.| Jinhui Mining vs. Jiangsu Financial Leasing | Jinhui Mining vs. Nuode Investment Co | Jinhui Mining vs. Tieling Newcity Investment | Jinhui Mining vs. Xiandai Investment Co |
| China Enterprise vs. Jinhui Mining Co | China Enterprise vs. China Asset Management | China Enterprise vs. Chengtun Mining Group | China Enterprise vs. JCHX Mining Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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