Correlation Between Shengda Mining and Jiugui Liquor
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By analyzing existing cross correlation between Shengda Mining Co and Jiugui Liquor Co, you can compare the effects of market volatilities on Shengda Mining and Jiugui 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 Shengda Mining with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Jiugui Liquor.
Diversification Opportunities for Shengda Mining and Jiugui Liquor
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and Jiugui is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Shengda Mining i.e., Shengda Mining and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Shengda Mining and Jiugui Liquor
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.65 times more return on investment than Jiugui Liquor. However, Shengda Mining Co is 1.54 times less risky than Jiugui Liquor. It trades about 0.11 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.12 per unit of risk. If you would invest 1,227 in Shengda Mining Co on November 30, 2024 and sell it today you would earn a total of 81.00 from holding Shengda Mining Co or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Jiugui Liquor Co
Performance |
| Timeline |
| Shengda Mining |
| Jiugui Liquor |
Shengda Mining and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Jiugui Liquor
The main advantage of trading using opposite Shengda Mining and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Jiugui 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Shengda Mining vs. Beijing Kaiwen Education | Shengda Mining vs. Time Publishing and | Shengda Mining vs. Markor International Home | Shengda Mining vs. Arrow Home Group |
| Jiugui Liquor vs. Sinosteel Engineering and | Jiugui Liquor vs. Bengang Steel Plates | Jiugui Liquor vs. Hengli Industrial Development | Jiugui Liquor vs. Sinocat Environmental Technology |
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.
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