Correlation Between Shengda Mining and Changchun High
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengda Mining Co and Changchun High New, you can compare the effects of market volatilities on Shengda Mining and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Changchun High.
Diversification Opportunities for Shengda Mining and Changchun High
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shengda and Changchun is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Shengda Mining i.e., Shengda Mining and Changchun High go up and down completely randomly.
Pair Corralation between Shengda Mining and Changchun High
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.37 times more return on investment than Changchun High. However, Shengda Mining is 1.37 times more volatile than Changchun High New. It trades about 0.01 of its potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of risk. If you would invest 1,457 in Shengda Mining Co on November 7, 2024 and sell it today you would lose (73.00) from holding Shengda Mining Co or give up 5.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.49% |
| Values | Daily Returns |
Shengda Mining Co vs. Changchun High New
Performance |
| Timeline |
| Shengda Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Changchun High New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shengda Mining and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Changchun High
The main advantage of trading using opposite Shengda Mining and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.The idea behind Shengda Mining Co and Changchun High New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |