Correlation Between Shengda Mining and Xinjiang Baodi
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By analyzing existing cross correlation between Shengda Mining Co and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Shengda Mining and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Xinjiang Baodi.
Diversification Opportunities for Shengda Mining and Xinjiang Baodi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengda and Xinjiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Shengda Mining i.e., Shengda Mining and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Shengda Mining and Xinjiang Baodi
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.1 times more return on investment than Xinjiang Baodi. However, Shengda Mining is 1.1 times more volatile than Xinjiang Baodi Mining. It trades about 0.14 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.12 per unit of risk. If you would invest 1,017 in Shengda Mining Co on August 30, 2024 and sell it today you would earn a total of 242.00 from holding Shengda Mining Co or generate 23.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Shengda Mining Co vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Shengda Mining |
| Xinjiang Baodi Mining |
Shengda Mining and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Xinjiang Baodi
The main advantage of trading using opposite Shengda Mining and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Shengda Mining vs. Juewei Food Co | Shengda Mining vs. Tianjin Pengling Rubber | Shengda Mining vs. Jiangsu Financial Leasing | Shengda Mining vs. Guangzhou Tinci Materials |
| Xinjiang Baodi vs. Shanghai Jinfeng Wine | Xinjiang Baodi vs. Hainan Mining Co | Xinjiang Baodi vs. Cicc Fund Management | Xinjiang Baodi vs. Sanbo Hospital Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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