Correlation Between Shengda Mining and Qingdao Rural
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By analyzing existing cross correlation between Shengda Mining Co and Qingdao Rural Commercial, you can compare the effects of market volatilities on Shengda Mining and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Qingdao Rural.
Diversification Opportunities for Shengda Mining and Qingdao Rural
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Qingdao is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Shengda Mining i.e., Shengda Mining and Qingdao Rural go up and down completely randomly.
Pair Corralation between Shengda Mining and Qingdao Rural
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 2.05 times more return on investment than Qingdao Rural. However, Shengda Mining is 2.05 times more volatile than Qingdao Rural Commercial. It trades about 0.07 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about 0.04 per unit of risk. If you would invest 909.00 in Shengda Mining Co on October 22, 2024 and sell it today you would earn a total of 456.00 from holding Shengda Mining Co or generate 50.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Qingdao Rural Commercial
Performance |
| Timeline |
| Shengda Mining |
| Qingdao Rural Commercial |
Shengda Mining and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Qingdao Rural
The main advantage of trading using opposite Shengda Mining and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. Anhui Jianghuai Automobile | Shengda Mining vs. Iat Automobile Technology | Shengda Mining vs. China Sports Industry |
| Qingdao Rural vs. Nanjing Canatal Data | Qingdao Rural vs. Longxing Chemical Stock | Qingdao Rural vs. Ping An Insurance | Qingdao Rural vs. China Life Insurance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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