Correlation Between Shengda Mining and Songcheng Performance
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By analyzing existing cross correlation between Shengda Mining Co and Songcheng Performance Develop, you can compare the effects of market volatilities on Shengda Mining and Songcheng Performance 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 Songcheng Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Songcheng Performance.
Diversification Opportunities for Shengda Mining and Songcheng Performance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shengda and Songcheng is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Songcheng Performance Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songcheng Performance 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 Songcheng Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songcheng Performance has no effect on the direction of Shengda Mining i.e., Shengda Mining and Songcheng Performance go up and down completely randomly.
Pair Corralation between Shengda Mining and Songcheng Performance
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.24 times more return on investment than Songcheng Performance. However, Shengda Mining is 1.24 times more volatile than Songcheng Performance Develop. It trades about 0.02 of its potential returns per unit of risk. Songcheng Performance Develop is currently generating about 0.0 per unit of risk. If you would invest 1,263 in Shengda Mining Co on September 3, 2024 and sell it today you would earn a total of 13.00 from holding Shengda Mining Co or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shengda Mining Co vs. Songcheng Performance Develop
Performance |
| Timeline |
| Shengda Mining |
| Songcheng Performance |
Shengda Mining and Songcheng Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Songcheng Performance
The main advantage of trading using opposite Shengda Mining and Songcheng Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Songcheng Performance 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 Songcheng Performance will offset losses from the drop in Songcheng Performance's long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co | Shengda Mining vs. Hoshine Silicon Ind |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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