Correlation Between Jinhui Mining and Eastroc Beverage
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By analyzing existing cross correlation between Jinhui Mining Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Jinhui Mining and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Eastroc Beverage.
Diversification Opportunities for Jinhui Mining and Eastroc Beverage
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Eastroc is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Jinhui Mining and Eastroc Beverage
Assuming the 90 days trading horizon Jinhui Mining Co is expected to under-perform the Eastroc Beverage. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Mining Co is 1.41 times less risky than Eastroc Beverage. The stock trades about -0.09 of its potential returns per unit of risk. The Eastroc Beverage Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 21,920 in Eastroc Beverage Group on September 12, 2024 and sell it today you would earn a total of 2,330 from holding Eastroc Beverage Group or generate 10.63% 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. Eastroc Beverage Group
Performance |
Timeline |
Jinhui Mining |
Eastroc Beverage |
Jinhui Mining and Eastroc Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Mining and Eastroc Beverage
The main advantage of trading using opposite Jinhui Mining and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage'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 |
Eastroc Beverage vs. China Petroleum Chemical | Eastroc Beverage vs. PetroChina Co Ltd | Eastroc Beverage vs. China State Construction | Eastroc Beverage vs. China Railway Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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