Correlation Between Shengda Mining and Chongqing Changan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengda Mining Co and Chongqing Changan Automobile, you can compare the effects of market volatilities on Shengda Mining and Chongqing Changan 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 Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Chongqing Changan.
Diversification Opportunities for Shengda Mining and Chongqing Changan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengda and Chongqing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan 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 Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Shengda Mining i.e., Shengda Mining and Chongqing Changan go up and down completely randomly.
Pair Corralation between Shengda Mining and Chongqing Changan
Assuming the 90 days trading horizon Shengda Mining is expected to generate 1.1 times less return on investment than Chongqing Changan. In addition to that, Shengda Mining is 1.18 times more volatile than Chongqing Changan Automobile. It trades about 0.01 of its total potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.02 per unit of volatility. If you would invest 1,340 in Chongqing Changan Automobile on August 27, 2024 and sell it today you would earn a total of 60.00 from holding Chongqing Changan Automobile or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Shengda Mining |
| Chongqing Changan |
Shengda Mining and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Chongqing Changan
The main advantage of trading using opposite Shengda Mining and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's 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 |
| Chongqing Changan vs. Lutian Machinery Co | Chongqing Changan vs. China Longyuan Power | Chongqing Changan vs. Changshu Tongrun Auto | Chongqing Changan vs. PetroChina Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |