Correlation Between Shengda Mining and Beijing Mainstreets
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By analyzing existing cross correlation between Shengda Mining Co and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Shengda Mining and Beijing Mainstreets 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 Shengda Mining with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Beijing Mainstreets.
Diversification Opportunities for Shengda Mining and Beijing Mainstreets
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengda and Beijing is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Shengda 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 Shengda Mining Co are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Shengda Mining i.e., Shengda Mining and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Shengda Mining and Beijing Mainstreets
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.88 times more return on investment than Beijing Mainstreets. However, Shengda Mining Co is 1.14 times less risky than Beijing Mainstreets. It trades about 0.03 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.1 per unit of risk. If you would invest 1,201 in Shengda Mining Co on September 14, 2024 and sell it today you would earn a total of 154.00 from holding Shengda Mining Co or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shengda Mining Co vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Shengda Mining |
| Beijing Mainstreets |
Shengda Mining and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Beijing Mainstreets
The main advantage of trading using opposite Shengda Mining and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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