Correlation Between Jinhui Mining and Jinhui Liquor
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By analyzing existing cross correlation between Jinhui Mining Co and Jinhui Liquor Co, you can compare the effects of market volatilities on Jinhui Mining and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Jinhui Liquor.
Diversification Opportunities for Jinhui Mining and Jinhui Liquor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Jinhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Jinhui Mining i.e., Jinhui Mining and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Jinhui Mining and Jinhui Liquor
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.69 times more return on investment than Jinhui Liquor. However, Jinhui Mining Co is 1.45 times less risky than Jinhui Liquor. It trades about -0.11 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.09 per unit of risk. If you would invest 1,294 in Jinhui Mining Co on October 8, 2024 and sell it today you would lose (183.00) from holding Jinhui Mining Co or give up 14.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Mining Co vs. Jinhui Liquor Co
Performance |
Timeline |
Jinhui Mining |
Jinhui Liquor |
Jinhui Mining and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Mining and Jinhui Liquor
The main advantage of trading using opposite Jinhui Mining and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining position performs unexpectedly, Jinhui Liquor 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 Liquor will offset losses from the drop in Jinhui Liquor's long position.Jinhui Mining vs. Zijin Mining Group | Jinhui Mining vs. Wanhua Chemical Group | Jinhui Mining vs. Baoshan Iron Steel | Jinhui Mining vs. Shandong Gold Mining |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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