Correlation Between Jinhui Mining and ButOne Information
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By analyzing existing cross correlation between Jinhui Mining Co and ButOne Information Corp, you can compare the effects of market volatilities on Jinhui Mining and ButOne Information 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 Jinhui Mining with a short position of ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and ButOne Information.
Diversification Opportunities for Jinhui Mining and ButOne Information
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and ButOne is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp and Jinhui Mining 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 Jinhui Mining Co are associated (or correlated) with ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and ButOne Information go up and down completely randomly.
Pair Corralation between Jinhui Mining and ButOne Information
Assuming the 90 days trading horizon Jinhui Mining is expected to generate 4.05 times less return on investment than ButOne Information. But when comparing it to its historical volatility, Jinhui Mining Co is 1.79 times less risky than ButOne Information. It trades about 0.05 of its potential returns per unit of risk. ButOne Information Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,728 in ButOne Information Corp on September 25, 2024 and sell it today you would earn a total of 439.00 from holding ButOne Information Corp or generate 25.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Mining Co vs. ButOne Information Corp
Performance |
Timeline |
Jinhui Mining |
ButOne Information Corp |
Jinhui Mining and ButOne Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Mining and ButOne Information
The main advantage of trading using opposite Jinhui Mining and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.Jinhui Mining vs. Zijin Mining Group | ||
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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