Correlation Between Shengda Mining and Sportsoul
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By analyzing existing cross correlation between Shengda Mining Co and Sportsoul Co Ltd, you can compare the effects of market volatilities on Shengda Mining and Sportsoul 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 Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Sportsoul.
Diversification Opportunities for Shengda Mining and Sportsoul
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shengda and Sportsoul is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul 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 Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Shengda Mining i.e., Shengda Mining and Sportsoul go up and down completely randomly.
Pair Corralation between Shengda Mining and Sportsoul
Assuming the 90 days trading horizon Shengda Mining is expected to generate 2.76 times less return on investment than Sportsoul. But when comparing it to its historical volatility, Shengda Mining Co is 1.29 times less risky than Sportsoul. It trades about 0.01 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,242 in Sportsoul Co Ltd on October 16, 2024 and sell it today you would lose (90.00) from holding Sportsoul Co Ltd or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Shengda Mining Co vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Shengda Mining |
| Sportsoul |
Shengda Mining and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Sportsoul
The main advantage of trading using opposite Shengda Mining and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul'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 |
| Sportsoul vs. Shengda Mining Co | Sportsoul vs. Do Fluoride Chemicals Co | Sportsoul vs. Hainan Mining Co | Sportsoul vs. Dymatic Chemicals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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