Correlation Between Jinhui Mining and Western Mining
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By analyzing existing cross correlation between Jinhui Mining Co and Western Mining Co, you can compare the effects of market volatilities on Jinhui Mining and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Western Mining.
Diversification Opportunities for Jinhui Mining and Western Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Western is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Western Mining go up and down completely randomly.
Pair Corralation between Jinhui Mining and Western Mining
Assuming the 90 days trading horizon Jinhui Mining is expected to generate 15.02 times less return on investment than Western Mining. But when comparing it to its historical volatility, Jinhui Mining Co is 1.06 times less risky than Western Mining. It trades about 0.0 of its potential returns per unit of risk. Western Mining Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,178 in Western Mining Co on September 12, 2024 and sell it today you would earn a total of 498.00 from holding Western Mining Co or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Western Mining Co
Performance |
| Timeline |
| Jinhui Mining |
| Western Mining |
Jinhui Mining and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Western Mining
The main advantage of trading using opposite Jinhui Mining and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Rongsheng Petrochemical Co |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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