Correlation Between Shengda Mining and Sichuan Jinshi
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By analyzing existing cross correlation between Shengda Mining Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Shengda Mining and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Sichuan Jinshi.
Diversification Opportunities for Shengda Mining and Sichuan Jinshi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shengda and Sichuan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Shengda Mining i.e., Shengda Mining and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Shengda Mining and Sichuan Jinshi
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Sichuan Jinshi. In addition to that, Shengda Mining is 1.15 times more volatile than Sichuan Jinshi Technology. It trades about -0.08 of its total potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.19 per unit of volatility. If you would invest 632.00 in Sichuan Jinshi Technology on August 28, 2024 and sell it today you would earn a total of 77.00 from holding Sichuan Jinshi Technology or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shengda Mining Co vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Shengda Mining |
| Sichuan Jinshi Technology |
Shengda Mining and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Sichuan Jinshi
The main advantage of trading using opposite Shengda Mining and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi'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 |
| Sichuan Jinshi vs. HaiXin Foods Co | Sichuan Jinshi vs. State Grid InformationCommunication | Sichuan Jinshi vs. Liuzhou Chemical Industry | Sichuan Jinshi vs. Milkyway Chemical Supply |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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