Correlation Between Shengda Mining and Zhejiang Yayi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengda Mining Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Shengda Mining and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Zhejiang Yayi.
Diversification Opportunities for Shengda Mining and Zhejiang Yayi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shengda and Zhejiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Shengda Mining i.e., Shengda Mining and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Shengda Mining and Zhejiang Yayi
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Zhejiang Yayi. In addition to that, Shengda Mining is 1.27 times more volatile than Zhejiang Yayi Metal. It trades about -0.07 of its total potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.02 per unit of volatility. If you would invest 2,572 in Zhejiang Yayi Metal on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Zhejiang Yayi Metal or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shengda Mining Co vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Shengda Mining |
| Zhejiang Yayi Metal |
Shengda Mining and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Zhejiang Yayi
The main advantage of trading using opposite Shengda Mining and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |