Correlation Between Shanghai Jin and Jinhui Mining
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By analyzing existing cross correlation between Shanghai Jin Jiang and Jinhui Mining Co, you can compare the effects of market volatilities on Shanghai Jin 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 Shanghai Jin with a short position of Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jin and Jinhui Mining.
Diversification Opportunities for Shanghai Jin and Jinhui Mining
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jinhui is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jin Jiang and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining and Shanghai Jin 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 Jin Jiang 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 Shanghai Jin i.e., Shanghai Jin and Jinhui Mining go up and down completely randomly.
Pair Corralation between Shanghai Jin and Jinhui Mining
Assuming the 90 days trading horizon Shanghai Jin Jiang is expected to under-perform the Jinhui Mining. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Jin Jiang is 1.31 times less risky than Jinhui Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Jinhui Mining Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,327 in Jinhui Mining Co on October 16, 2024 and sell it today you would lose (203.00) from holding Jinhui Mining Co or give up 15.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jin Jiang vs. Jinhui Mining Co
Performance |
| Timeline |
| Shanghai Jin Jiang |
| Jinhui Mining |
Shanghai Jin and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jin and Jinhui Mining
The main advantage of trading using opposite Shanghai Jin and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jin 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.| Shanghai Jin vs. Jinhui Mining Co | Shanghai Jin vs. JCHX Mining Management | Shanghai Jin vs. Jiangsu Phoenix Publishing | Shanghai Jin vs. Changjiang Publishing Media |
| Jinhui Mining vs. Lontium Semiconductor Corp | Jinhui Mining vs. Union Semiconductor Co | Jinhui Mining vs. Great Sun Foods Co | Jinhui Mining vs. Shandong Longda Meat |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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