Correlation Between Shengda Mining and Chongqing Road
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By analyzing existing cross correlation between Shengda Mining Co and Chongqing Road Bridge, you can compare the effects of market volatilities on Shengda Mining and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Chongqing Road.
Diversification Opportunities for Shengda Mining and Chongqing Road
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shengda and Chongqing is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Shengda Mining i.e., Shengda Mining and Chongqing Road go up and down completely randomly.
Pair Corralation between Shengda Mining and Chongqing Road
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.94 times more return on investment than Chongqing Road. However, Shengda Mining Co is 1.06 times less risky than Chongqing Road. It trades about 0.38 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about -0.01 per unit of risk. If you would invest 1,204 in Shengda Mining Co on November 3, 2024 and sell it today you would earn a total of 180.00 from holding Shengda Mining Co or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Chongqing Road Bridge
Performance |
| Timeline |
| Shengda Mining |
| Chongqing Road Bridge |
Shengda Mining and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Chongqing Road
The main advantage of trading using opposite Shengda Mining and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Shengda Mining vs. Konfoong Materials International | Shengda Mining vs. GRIPM Advanced Materials | Shengda Mining vs. Harvest Fund Management | Shengda Mining vs. Shenzhen Cotran New |
| Chongqing Road vs. Beijing YanDong MicroElectronic | Chongqing Road vs. Kingclean Electric Co | Chongqing Road vs. Marssenger Kitchenware Co | Chongqing Road vs. TongFu Microelectronics Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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