Correlation Between TianJin 712 and Hainan Mining
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By analyzing existing cross correlation between TianJin 712 Communication and Hainan Mining Co, you can compare the effects of market volatilities on TianJin 712 and Hainan Mining 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 TianJin 712 with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Hainan Mining.
Diversification Opportunities for TianJin 712 and Hainan Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TianJin and Hainan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and TianJin 712 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 TianJin 712 Communication are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of TianJin 712 i.e., TianJin 712 and Hainan Mining go up and down completely randomly.
Pair Corralation between TianJin 712 and Hainan Mining
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 1.39 times more return on investment than Hainan Mining. However, TianJin 712 is 1.39 times more volatile than Hainan Mining Co. It trades about 0.08 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.09 per unit of risk. If you would invest 1,900 in TianJin 712 Communication on September 28, 2024 and sell it today you would earn a total of 114.00 from holding TianJin 712 Communication or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Hainan Mining Co
Performance |
| Timeline |
| TianJin 712 Communication |
| Hainan Mining |
TianJin 712 and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Hainan Mining
The main advantage of trading using opposite TianJin 712 and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| TianJin 712 vs. Industrial and Commercial | TianJin 712 vs. Agricultural Bank of | TianJin 712 vs. China Construction Bank | TianJin 712 vs. Bank of China |
| Hainan Mining vs. Tianshui Huatian Technology | Hainan Mining vs. Sinocelltech Group | Hainan Mining vs. Hangzhou Pinming Software | Hainan Mining vs. Western Superconducting Tech |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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