Correlation Between Shengda Mining and Zhonghong Pulin
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By analyzing existing cross correlation between Shengda Mining Co and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Shengda Mining and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Zhonghong Pulin.
Diversification Opportunities for Shengda Mining and Zhonghong Pulin
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Zhonghong is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Shengda Mining i.e., Shengda Mining and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Shengda Mining and Zhonghong Pulin
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.05 times more return on investment than Zhonghong Pulin. However, Shengda Mining is 1.05 times more volatile than Zhonghong Pulin Medical. It trades about 0.02 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.0 per unit of risk. If you would invest 1,377 in Shengda Mining Co on October 26, 2024 and sell it today you would earn a total of 13.00 from holding Shengda Mining Co or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Shengda Mining |
| Zhonghong Pulin Medical |
Shengda Mining and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Zhonghong Pulin
The main advantage of trading using opposite Shengda Mining and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Shengda Mining vs. Zoje Resources Investment | Shengda Mining vs. Heilongjiang Transport Development | Shengda Mining vs. Zhongshan Broad Ocean Motor | Shengda Mining vs. Henan Shuanghui Investment |
| Zhonghong Pulin vs. Agricultural Bank of | Zhonghong Pulin vs. Industrial and Commercial | Zhonghong Pulin vs. Bank of China | Zhonghong Pulin vs. China Construction Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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