Correlation Between Shengda Mining and Suzhou Industrial
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By analyzing existing cross correlation between Shengda Mining Co and Suzhou Industrial Park, you can compare the effects of market volatilities on Shengda Mining and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Suzhou Industrial.
Diversification Opportunities for Shengda Mining and Suzhou Industrial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and Suzhou is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Shengda Mining i.e., Shengda Mining and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Shengda Mining and Suzhou Industrial
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.52 times more return on investment than Suzhou Industrial. However, Shengda Mining Co is 1.93 times less risky than Suzhou Industrial. It trades about 0.02 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about 0.0 per unit of risk. If you would invest 1,358 in Shengda Mining Co on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Shengda Mining Co or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Shengda Mining Co vs. Suzhou Industrial Park
Performance |
| Timeline |
| Shengda Mining |
| Suzhou Industrial Park |
Shengda Mining and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Suzhou Industrial
The main advantage of trading using opposite Shengda Mining and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial'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 |
| Suzhou Industrial vs. Shengda Mining Co | Suzhou Industrial vs. Jiangxi Hengda Hi Tech | Suzhou Industrial vs. Zijin Mining Group | Suzhou Industrial vs. Jilin Jlu Communication |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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