Correlation Between Hangzhou Pinming and Hainan Mining
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By analyzing existing cross correlation between Hangzhou Pinming Software and Hainan Mining Co, you can compare the effects of market volatilities on Hangzhou Pinming 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 Hangzhou Pinming with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Hainan Mining.
Diversification Opportunities for Hangzhou Pinming and Hainan Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Hainan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Hangzhou Pinming 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 Hangzhou Pinming Software 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 Hangzhou Pinming i.e., Hangzhou Pinming and Hainan Mining go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Hainan Mining
Assuming the 90 days trading horizon Hangzhou Pinming is expected to generate 1.9 times less return on investment than Hainan Mining. In addition to that, Hangzhou Pinming is 1.21 times more volatile than Hainan Mining Co. It trades about 0.07 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.17 per unit of volatility. If you would invest 564.00 in Hainan Mining Co on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Hainan Mining Co or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Hainan Mining Co
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Hainan Mining |
Hangzhou Pinming and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Hainan Mining
The main advantage of trading using opposite Hangzhou Pinming and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming 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.| Hangzhou Pinming vs. CareRay Digital Medical | Hangzhou Pinming vs. Chengdu Spaceon Electronics | Hangzhou Pinming vs. Bomesc Offshore Engineering | Hangzhou Pinming vs. CSSC Offshore Marine |
| Hainan Mining vs. Silkroad Visual Technology | Hainan Mining vs. Longjian Road Bridge | Hainan Mining vs. Juneyao Airlines | Hainan Mining vs. Hainan Haiqi Transportation |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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