Correlation Between Jinhui Mining and China Railway
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By analyzing existing cross correlation between Jinhui Mining Co and China Railway Construction, you can compare the effects of market volatilities on Jinhui Mining and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and China Railway.
Diversification Opportunities for Jinhui Mining and China Railway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and China Railway go up and down completely randomly.
Pair Corralation between Jinhui Mining and China Railway
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.17 times more return on investment than China Railway. However, Jinhui Mining is 1.17 times more volatile than China Railway Construction. It trades about 0.13 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.18 per unit of risk. If you would invest 1,109 in Jinhui Mining Co on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Jinhui Mining Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. China Railway Construction
Performance |
| Timeline |
| Jinhui Mining |
| China Railway Constr |
Jinhui Mining and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and China Railway
The main advantage of trading using opposite Jinhui Mining and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Jinhui Mining vs. Time Publishing and | Jinhui Mining vs. Zhejiang Publishing Media | Jinhui Mining vs. Heilongjiang Publishing Media | Jinhui Mining vs. Chengtun Mining Group |
| China Railway vs. Jiaozuo Wanfang Aluminum | China Railway vs. Jiangsu Financial Leasing | China Railway vs. Heilongjiang Transport Development | China Railway vs. Tongxing Environmental Protection |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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