Correlation Between Shengda Mining and Fujian Oriental
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By analyzing existing cross correlation between Shengda Mining Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Shengda Mining and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Fujian Oriental.
Diversification Opportunities for Shengda Mining and Fujian Oriental
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shengda and Fujian is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Shengda Mining i.e., Shengda Mining and Fujian Oriental go up and down completely randomly.
Pair Corralation between Shengda Mining and Fujian Oriental
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.82 times more return on investment than Fujian Oriental. However, Shengda Mining Co is 1.21 times less risky than Fujian Oriental. It trades about 0.01 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.01 per unit of risk. If you would invest 1,386 in Shengda Mining Co on September 12, 2024 and sell it today you would lose (59.00) from holding Shengda Mining Co or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Shengda Mining Co vs. Fujian Oriental Silver
Performance |
| Timeline |
| Shengda Mining |
| Fujian Oriental Silver |
Shengda Mining and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Fujian Oriental
The main advantage of trading using opposite Shengda Mining and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co |
| Fujian Oriental vs. Guangdong Jingyi Metal | Fujian Oriental vs. Bomin Electronics Co | Fujian Oriental vs. Xinjiang Baodi Mining | Fujian Oriental vs. Dongguan Tarry Electronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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