Correlation Between Altair Resources and Jinhua Capital
Can any of the company-specific risk be diversified away by investing in both Altair Resources and Jinhua Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Altair Resources and Jinhua Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Resources and Jinhua Capital, you can compare the effects of market volatilities on Altair Resources and Jinhua Capital 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 Altair Resources with a short position of Jinhua Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Resources and Jinhua Capital.
Diversification Opportunities for Altair Resources and Jinhua Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altair and Jinhua is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altair Resources and Jinhua Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhua Capital and Altair Resources 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 Altair Resources are associated (or correlated) with Jinhua Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhua Capital has no effect on the direction of Altair Resources i.e., Altair Resources and Jinhua Capital go up and down completely randomly.
Pair Corralation between Altair Resources and Jinhua Capital
If you would invest 0.50 in Jinhua Capital on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Jinhua Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Altair Resources vs. Jinhua Capital
Performance |
| Timeline |
| Altair Resources |
| Jinhua Capital |
Altair Resources and Jinhua Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Resources and Jinhua Capital
The main advantage of trading using opposite Altair Resources and Jinhua Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Resources position performs unexpectedly, Jinhua Capital 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 Jinhua Capital will offset losses from the drop in Jinhua Capital's long position.| Altair Resources vs. First Majestic Silver | Altair Resources vs. Ivanhoe Energy | Altair Resources vs. Orezone Gold Corp | Altair Resources vs. Faraday Copper Corp |
| Jinhua Capital vs. Upstart Investments | Jinhua Capital vs. Canadian General Investments | Jinhua Capital vs. Bip Investment Corp | Jinhua Capital vs. Altair Resources |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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