Correlation Between Shanghai Sanyou and Hainan Mining
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By analyzing existing cross correlation between Shanghai Sanyou Medical and Hainan Mining Co, you can compare the effects of market volatilities on Shanghai Sanyou 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 Shanghai Sanyou with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Sanyou and Hainan Mining.
Diversification Opportunities for Shanghai Sanyou and Hainan Mining
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hainan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Sanyou Medical and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Shanghai Sanyou 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 Shanghai Sanyou Medical 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 Shanghai Sanyou i.e., Shanghai Sanyou and Hainan Mining go up and down completely randomly.
Pair Corralation between Shanghai Sanyou and Hainan Mining
Assuming the 90 days trading horizon Shanghai Sanyou Medical is expected to generate 1.09 times more return on investment than Hainan Mining. However, Shanghai Sanyou is 1.09 times more volatile than Hainan Mining Co. It trades about -0.02 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.02 per unit of risk. If you would invest 2,116 in Shanghai Sanyou Medical on October 16, 2024 and sell it today you would lose (73.00) from holding Shanghai Sanyou Medical or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Sanyou Medical vs. Hainan Mining Co
Performance |
| Timeline |
| Shanghai Sanyou Medical |
| Hainan Mining |
Shanghai Sanyou and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Sanyou and Hainan Mining
The main advantage of trading using opposite Shanghai Sanyou and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Sanyou 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.| Shanghai Sanyou vs. Zijin Mining Group | Shanghai Sanyou vs. Changjiang Jinggong Steel | Shanghai Sanyou vs. Shenzhen Silver Basis | Shanghai Sanyou vs. Gansu Jiu Steel |
| Hainan Mining vs. Shanghai Sanyou Medical | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Dymatic Chemicals | Hainan Mining vs. Fiberhome Telecommunication Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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