Correlation Between Qingdao Haier and Jinhui Mining
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By analyzing existing cross correlation between Qingdao Haier Biomedical and Jinhui Mining Co, you can compare the effects of market volatilities on Qingdao Haier and Jinhui 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 Qingdao Haier with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Haier and Jinhui Mining.
Diversification Opportunities for Qingdao Haier and Jinhui Mining
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Jinhui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Haier Biomedical and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Qingdao Haier 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 Qingdao Haier Biomedical are associated (or correlated) with Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Qingdao Haier i.e., Qingdao Haier and Jinhui Mining go up and down completely randomly.
Pair Corralation between Qingdao Haier and Jinhui Mining
Assuming the 90 days trading horizon Qingdao Haier Biomedical is expected to under-perform the Jinhui Mining. In addition to that, Qingdao Haier is 1.45 times more volatile than Jinhui Mining Co. It trades about 0.0 of its total potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.0 per unit of volatility. If you would invest 1,254 in Jinhui Mining Co on September 12, 2024 and sell it today you would lose (60.00) from holding Jinhui Mining Co or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Haier Biomedical vs. Jinhui Mining Co
Performance |
| Timeline |
| Qingdao Haier Biomedical |
| Jinhui Mining |
Qingdao Haier and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Haier and Jinhui Mining
The main advantage of trading using opposite Qingdao Haier and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Haier position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Qingdao Haier vs. Jinhui Mining Co | Qingdao Haier vs. Xinjiang Tianrun Dairy | Qingdao Haier vs. Chenzhou Jingui Silver | Qingdao Haier vs. Zijin Mining Group |
| Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Rongsheng Petrochemical Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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