Correlation Between Shengda Mining and Anhui Huaertai
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By analyzing existing cross correlation between Shengda Mining Co and Anhui Huaertai Chemical, you can compare the effects of market volatilities on Shengda Mining and Anhui Huaertai 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 Anhui Huaertai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Anhui Huaertai.
Diversification Opportunities for Shengda Mining and Anhui Huaertai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengda and Anhui is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Anhui Huaertai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaertai Chemical 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 Anhui Huaertai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaertai Chemical has no effect on the direction of Shengda Mining i.e., Shengda Mining and Anhui Huaertai go up and down completely randomly.
Pair Corralation between Shengda Mining and Anhui Huaertai
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Anhui Huaertai. In addition to that, Shengda Mining is 1.08 times more volatile than Anhui Huaertai Chemical. It trades about -0.03 of its total potential returns per unit of risk. Anhui Huaertai Chemical is currently generating about 0.07 per unit of volatility. If you would invest 1,075 in Anhui Huaertai Chemical on September 5, 2024 and sell it today you would earn a total of 78.00 from holding Anhui Huaertai Chemical or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Shengda Mining Co vs. Anhui Huaertai Chemical
Performance |
| Timeline |
| Shengda Mining |
| Anhui Huaertai Chemical |
Shengda Mining and Anhui Huaertai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Anhui Huaertai
The main advantage of trading using opposite Shengda Mining and Anhui Huaertai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Anhui Huaertai 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 Anhui Huaertai will offset losses from the drop in Anhui Huaertai's long position.| Shengda Mining vs. Kontour Medical Technology | Shengda Mining vs. Changchun Faway Automobile | Shengda Mining vs. Jafron Biomedical Co | Shengda Mining vs. Contec Medical Systems |
| Anhui Huaertai vs. Shengda Mining Co | Anhui Huaertai vs. Guangdong Silvere Sci | Anhui Huaertai vs. Xiandai Investment Co | Anhui Huaertai vs. Jiangsu Yueda 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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