Correlation Between Jinhui Mining and Shuhua Sports
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By analyzing existing cross correlation between Jinhui Mining Co and Shuhua Sports Co, you can compare the effects of market volatilities on Jinhui Mining and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Shuhua Sports.
Diversification Opportunities for Jinhui Mining and Shuhua Sports
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Shuhua is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Shuhua Sports go up and down completely randomly.
Pair Corralation between Jinhui Mining and Shuhua Sports
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.91 times more return on investment than Shuhua Sports. However, Jinhui Mining Co is 1.1 times less risky than Shuhua Sports. It trades about 0.02 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.03 per unit of risk. If you would invest 1,156 in Jinhui Mining Co on August 31, 2024 and sell it today you would earn a total of 33.00 from holding Jinhui Mining Co or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Shuhua Sports Co
Performance |
| Timeline |
| Jinhui Mining |
| Shuhua Sports |
Jinhui Mining and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Shuhua Sports
The main advantage of trading using opposite Jinhui Mining and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Jinhui Mining vs. Orinko Advanced Plastics | Jinhui Mining vs. HaiXin Foods Co | Jinhui Mining vs. Ningbo Tip Rubber | Jinhui Mining vs. Sinosteel Luonai Materials |
| Shuhua Sports vs. China State Construction | Shuhua Sports vs. China Merchants Shekou | Shuhua Sports vs. Huafa Industrial Co | Shuhua Sports vs. China International Capital |
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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