Correlation Between Jinhui Mining and Shanghai Jin
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By analyzing existing cross correlation between Jinhui Mining Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on Jinhui Mining and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Shanghai Jin.
Diversification Opportunities for Jinhui Mining and Shanghai Jin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Shanghai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Shanghai Jin go up and down completely randomly.
Pair Corralation between Jinhui Mining and Shanghai Jin
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 1.57 times more return on investment than Shanghai Jin. However, Jinhui Mining is 1.57 times more volatile than Shanghai Jin Jiang. It trades about -0.13 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.39 per unit of risk. If you would invest 1,165 in Jinhui Mining Co on October 16, 2024 and sell it today you would lose (41.00) from holding Jinhui Mining Co or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Jinhui Mining |
| Shanghai Jin Jiang |
Jinhui Mining and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Shanghai Jin
The main advantage of trading using opposite Jinhui Mining and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin'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 |
| Shanghai Jin vs. China Satellite Communications | Shanghai Jin vs. Tongyu Communication | Shanghai Jin vs. Cansino Biologics | Shanghai Jin vs. Bank of Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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