Correlation Between Jinhui Mining and Nantong Haixing
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By analyzing existing cross correlation between Jinhui Mining Co and Nantong Haixing Electronics, you can compare the effects of market volatilities on Jinhui Mining and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Nantong Haixing.
Diversification Opportunities for Jinhui Mining and Nantong Haixing
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Nantong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Nantong Haixing go up and down completely randomly.
Pair Corralation between Jinhui Mining and Nantong Haixing
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.02 times more return on investment than Nantong Haixing. However, Jinhui Mining is 1.02 times more volatile than Nantong Haixing Electronics. It trades about 0.0 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.02 per unit of risk. If you would invest 1,239 in Jinhui Mining Co on October 16, 2024 and sell it today you would lose (115.00) from holding Jinhui Mining Co or give up 9.28% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| Jinhui Mining |
| Nantong Haixing Elec |
Jinhui Mining and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Nantong Haixing
The main advantage of trading using opposite Jinhui Mining and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Jinhui Mining vs. Lutian Machinery Co | Jinhui Mining vs. Shenzhen Centralcon Investment | Jinhui Mining vs. Ningbo Construction Co | Jinhui Mining vs. Chengdu Xingrong Investment |
| Nantong Haixing vs. Sichuan Fulin Transportation | Nantong Haixing vs. GRIPM Advanced Materials | Nantong Haixing vs. Lander Sports Development | Nantong Haixing vs. Sportsoul Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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