Correlation Between Hongli Group and Southern Copper
Can any of the company-specific risk be diversified away by investing in both Hongli Group and Southern Copper 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 Hongli Group and Southern Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hongli Group Ordinary and Southern Copper, you can compare the effects of market volatilities on Hongli Group and Southern Copper 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 Hongli Group with a short position of Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongli Group and Southern Copper.
Diversification Opportunities for Hongli Group and Southern Copper
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hongli and Southern is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hongli Group Ordinary and Southern Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper and Hongli Group 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 Hongli Group Ordinary are associated (or correlated) with Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper has no effect on the direction of Hongli Group i.e., Hongli Group and Southern Copper go up and down completely randomly.
Pair Corralation between Hongli Group and Southern Copper
Considering the 90-day investment horizon Hongli Group Ordinary is expected to generate 2.19 times more return on investment than Southern Copper. However, Hongli Group is 2.19 times more volatile than Southern Copper. It trades about 0.0 of its potential returns per unit of risk. Southern Copper is currently generating about -0.15 per unit of risk. If you would invest 128.00 in Hongli Group Ordinary on September 2, 2024 and sell it today you would lose (3.00) from holding Hongli Group Ordinary or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongli Group Ordinary vs. Southern Copper
Performance |
| Timeline |
| Hongli Group Ordinary |
| Southern Copper |
Hongli Group and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongli Group and Southern Copper
The main advantage of trading using opposite Hongli Group and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongli Group position performs unexpectedly, Southern Copper 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 Southern Copper will offset losses from the drop in Southern Copper's long position.| Hongli Group vs. Integral Ad Science | Hongli Group vs. United Homes Group | Hongli Group vs. WiMi Hologram Cloud | Hongli Group vs. JBG SMITH Properties |
| Southern Copper vs. Ero Copper Corp | Southern Copper vs. Hudbay Minerals | Southern Copper vs. Taseko Mines | Southern Copper vs. Amerigo 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |