Correlation Between Shengda Mining and Shanghai Jinfeng
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By analyzing existing cross correlation between Shengda Mining Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Shengda Mining and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Shanghai Jinfeng.
Diversification Opportunities for Shengda Mining and Shanghai Jinfeng
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Shanghai is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Shengda Mining i.e., Shengda Mining and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Shengda Mining and Shanghai Jinfeng
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.75 times more return on investment than Shanghai Jinfeng. However, Shengda Mining Co is 1.33 times less risky than Shanghai Jinfeng. It trades about 0.38 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about -0.2 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Shengda Mining |
| Shanghai Jinfeng Wine |
Shengda Mining and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Shanghai Jinfeng
The main advantage of trading using opposite Shengda Mining and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng'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 |
| Shanghai Jinfeng vs. Jiangsu GDK Biotechnology | Shanghai Jinfeng vs. Chengdu Xingrong Investment | Shanghai Jinfeng vs. Sichuan Hebang Biotechnology | Shanghai Jinfeng vs. Nuode Investment 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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