Correlation Between Shengda Mining and Jizhong Energy
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By analyzing existing cross correlation between Shengda Mining Co and Jizhong Energy Resources, you can compare the effects of market volatilities on Shengda Mining and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Jizhong Energy.
Diversification Opportunities for Shengda Mining and Jizhong Energy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and Jizhong is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Shengda Mining i.e., Shengda Mining and Jizhong Energy go up and down completely randomly.
Pair Corralation between Shengda Mining and Jizhong Energy
Assuming the 90 days trading horizon Shengda Mining is expected to generate 1.78 times less return on investment than Jizhong Energy. In addition to that, Shengda Mining is 1.89 times more volatile than Jizhong Energy Resources. It trades about 0.01 of its total potential returns per unit of risk. Jizhong Energy Resources is currently generating about 0.03 per unit of volatility. If you would invest 518.00 in Jizhong Energy Resources on October 14, 2024 and sell it today you would earn a total of 100.00 from holding Jizhong Energy Resources or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Jizhong Energy Resources
Performance |
| Timeline |
| Shengda Mining |
| Jizhong Energy Resources |
Shengda Mining and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Jizhong Energy
The main advantage of trading using opposite Shengda Mining and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy'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 |
| Jizhong Energy vs. Longxing Chemical Stock | Jizhong Energy vs. Shengda Mining Co | Jizhong Energy vs. Jinsanjiang Silicon Material | Jizhong Energy vs. Shanghai Yanpu Metal |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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