Correlation Between Zhejiang Yongjin and Hainan Mining
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Hainan Mining Co, you can compare the effects of market volatilities on Zhejiang Yongjin 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 Zhejiang Yongjin with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Hainan Mining.
Diversification Opportunities for Zhejiang Yongjin and Hainan Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Hainan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Zhejiang Yongjin 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 Zhejiang Yongjin Metal 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 Zhejiang Yongjin i.e., Zhejiang Yongjin and Hainan Mining go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Hainan Mining
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to under-perform the Hainan Mining. In addition to that, Zhejiang Yongjin is 1.01 times more volatile than Hainan Mining Co. It trades about -0.03 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of volatility. If you would invest 773.00 in Hainan Mining Co on November 1, 2024 and sell it today you would lose (95.00) from holding Hainan Mining Co or give up 12.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Hainan Mining Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Hainan Mining |
Zhejiang Yongjin and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Hainan Mining
The main advantage of trading using opposite Zhejiang Yongjin and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin 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.| Zhejiang Yongjin vs. Hainan Mining Co | Zhejiang Yongjin vs. Fangda Special Steel | Zhejiang Yongjin vs. Lingyuan Iron Steel | Zhejiang Yongjin vs. Tibet Huayu Mining |
| Hainan Mining vs. Bank of Suzhou | Hainan Mining vs. Nantong Haixing Electronics | Hainan Mining vs. Epoxy Base Electronic | Hainan Mining vs. Lecron Energy Saving |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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