Correlation Between Sinomine Resource and Hangzhou Gaoxin
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By analyzing existing cross correlation between Sinomine Resource Exploration and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Sinomine Resource and Hangzhou Gaoxin 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 Sinomine Resource with a short position of Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomine Resource and Hangzhou Gaoxin.
Diversification Opportunities for Sinomine Resource and Hangzhou Gaoxin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomine and Hangzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinomine Resource Exploration and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber and Sinomine Resource 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 Sinomine Resource Exploration are associated (or correlated) with Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Sinomine Resource i.e., Sinomine Resource and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Sinomine Resource and Hangzhou Gaoxin
Assuming the 90 days trading horizon Sinomine Resource Exploration is expected to generate 0.52 times more return on investment than Hangzhou Gaoxin. However, Sinomine Resource Exploration is 1.93 times less risky than Hangzhou Gaoxin. It trades about -0.12 of its potential returns per unit of risk. Hangzhou Gaoxin Rubber is currently generating about -0.21 per unit of risk. If you would invest 3,767 in Sinomine Resource Exploration on October 3, 2024 and sell it today you would lose (217.00) from holding Sinomine Resource Exploration or give up 5.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sinomine Resource Exploration vs. Hangzhou Gaoxin Rubber
Performance |
Timeline |
Sinomine Resource |
Hangzhou Gaoxin Rubber |
Sinomine Resource and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomine Resource and Hangzhou Gaoxin
The main advantage of trading using opposite Sinomine Resource and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomine Resource position performs unexpectedly, Hangzhou Gaoxin 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 Hangzhou Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.Sinomine Resource vs. XiAn Dagang Road | Sinomine Resource vs. Integrated Electronic Systems | Sinomine Resource vs. Shaanxi Broadcast TV | Sinomine Resource vs. Ningbo Kangqiang Electronics |
Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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