Correlation Between Shengda Mining and Jiangsu Yueda
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By analyzing existing cross correlation between Shengda Mining Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Shengda Mining and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Jiangsu Yueda.
Diversification Opportunities for Shengda Mining and Jiangsu Yueda
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shengda and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Shengda Mining i.e., Shengda Mining and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Shengda Mining and Jiangsu Yueda
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.11 times more return on investment than Jiangsu Yueda. However, Shengda Mining is 1.11 times more volatile than Jiangsu Yueda Investment. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.03 per unit of risk. If you would invest 1,201 in Shengda Mining Co on September 14, 2024 and sell it today you would earn a total of 154.00 from holding Shengda Mining Co or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shengda Mining Co vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Shengda Mining |
| Jiangsu Yueda Investment |
Shengda Mining and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Jiangsu Yueda
The main advantage of trading using opposite Shengda Mining and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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