Correlation Between Shengda Mining and Penyao Environmental
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By analyzing existing cross correlation between Shengda Mining Co and Penyao Environmental Protection, you can compare the effects of market volatilities on Shengda Mining and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Penyao Environmental.
Diversification Opportunities for Shengda Mining and Penyao Environmental
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and Penyao is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Shengda Mining i.e., Shengda Mining and Penyao Environmental go up and down completely randomly.
Pair Corralation between Shengda Mining and Penyao Environmental
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.68 times more return on investment than Penyao Environmental. However, Shengda Mining Co is 1.47 times less risky than Penyao Environmental. It trades about 0.12 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.19 per unit of risk. If you would invest 1,276 in Shengda Mining Co on October 30, 2024 and sell it today you would earn a total of 108.00 from holding Shengda Mining Co or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Shengda Mining |
| Penyao Environmental |
Shengda Mining and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Penyao Environmental
The main advantage of trading using opposite Shengda Mining and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Shengda Mining vs. Xinjiang Baodi Mining | Shengda Mining vs. China Publishing Media | Shengda Mining vs. Western Metal Materials | Shengda Mining vs. Thinkingdom Media 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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