Correlation Between Shengda Mining and NAURA Technology
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By analyzing existing cross correlation between Shengda Mining Co and NAURA Technology Group, you can compare the effects of market volatilities on Shengda Mining and NAURA Technology 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 NAURA Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and NAURA Technology.
Diversification Opportunities for Shengda Mining and NAURA Technology
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shengda and NAURA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and NAURA Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAURA Technology 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 NAURA Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAURA Technology has no effect on the direction of Shengda Mining i.e., Shengda Mining and NAURA Technology go up and down completely randomly.
Pair Corralation between Shengda Mining and NAURA Technology
Assuming the 90 days trading horizon Shengda Mining is expected to generate 4.13 times less return on investment than NAURA Technology. In addition to that, Shengda Mining is 1.25 times more volatile than NAURA Technology Group. It trades about 0.01 of its total potential returns per unit of risk. NAURA Technology Group is currently generating about 0.05 per unit of volatility. If you would invest 24,315 in NAURA Technology Group on October 16, 2024 and sell it today you would earn a total of 13,931 from holding NAURA Technology Group or generate 57.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. NAURA Technology Group
Performance |
| Timeline |
| Shengda Mining |
| NAURA Technology |
Shengda Mining and NAURA Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and NAURA Technology
The main advantage of trading using opposite Shengda Mining and NAURA Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, NAURA Technology 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 NAURA Technology will offset losses from the drop in NAURA Technology's long position.| Shengda Mining vs. Shanghai Shibei Hi Tech | Shengda Mining vs. Nanjing Putian Telecommunications | Shengda Mining vs. Wuhan Yangtze Communication | Shengda Mining vs. Jonjee Hi tech Industrial |
| NAURA Technology vs. Shenyang Blue Silver | NAURA Technology vs. Vanfund Urban Investment | NAURA Technology vs. Shengda Mining Co | NAURA Technology vs. Luyin Investment Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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