Correlation Between Jinhui Mining and Semiconductor Manufacturing
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By analyzing existing cross correlation between Jinhui Mining Co and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Jinhui Mining and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Semiconductor Manufacturing.
Diversification Opportunities for Jinhui Mining and Semiconductor Manufacturing
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Semiconductor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Jinhui Mining and Semiconductor Manufacturing
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.86 times more return on investment than Semiconductor Manufacturing. However, Jinhui Mining Co is 1.16 times less risky than Semiconductor Manufacturing. It trades about -0.34 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about -0.78 per unit of risk. If you would invest 1,215 in Jinhui Mining Co on October 13, 2024 and sell it today you would lose (111.00) from holding Jinhui Mining Co or give up 9.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Jinhui Mining |
| Semiconductor Manufacturing |
Jinhui Mining and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Semiconductor Manufacturing
The main advantage of trading using opposite Jinhui Mining and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Shandong Gold Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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