Correlation Between Jinhui Mining and Dongxing Sec
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By analyzing existing cross correlation between Jinhui Mining Co and Dongxing Sec Co, you can compare the effects of market volatilities on Jinhui Mining and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Dongxing Sec.
Diversification Opportunities for Jinhui Mining and Dongxing Sec
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Dongxing is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Dongxing Sec go up and down completely randomly.
Pair Corralation between Jinhui Mining and Dongxing Sec
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.49 times more return on investment than Dongxing Sec. However, Jinhui Mining Co is 2.05 times less risky than Dongxing Sec. It trades about -0.13 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.19 per unit of risk. If you would invest 1,189 in Jinhui Mining Co on October 10, 2024 and sell it today you would lose (43.00) from holding Jinhui Mining Co or give up 3.62% 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. Dongxing Sec Co
Performance |
| Timeline |
| Jinhui Mining |
| Dongxing Sec |
Jinhui Mining and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Dongxing Sec
The main advantage of trading using opposite Jinhui Mining and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Jinhui Mining vs. Sichuan Fulin Transportation | Jinhui Mining vs. Haima Automobile Group | Jinhui Mining vs. Fujian Longzhou Transportation | Jinhui Mining vs. Wuhan Yangtze Communication |
| Dongxing Sec vs. Liaoning Dingjide Petrochemical | Dongxing Sec vs. HeBei Jinniu Chemical | Dongxing Sec vs. Jinsanjiang Silicon Material | Dongxing Sec vs. Jinling Hotel Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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