Correlation Between Shengda Mining and Heilongjiang Transport
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By analyzing existing cross correlation between Shengda Mining Co and Heilongjiang Transport Development, you can compare the effects of market volatilities on Shengda Mining and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Heilongjiang Transport.
Diversification Opportunities for Shengda Mining and Heilongjiang Transport
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shengda and Heilongjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Shengda Mining i.e., Shengda Mining and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Shengda Mining and Heilongjiang Transport
Assuming the 90 days trading horizon Shengda Mining is expected to generate 2.34 times less return on investment than Heilongjiang Transport. In addition to that, Shengda Mining is 1.07 times more volatile than Heilongjiang Transport Development. It trades about 0.01 of its total potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.03 per unit of volatility. If you would invest 306.00 in Heilongjiang Transport Development on September 3, 2024 and sell it today you would earn a total of 83.00 from holding Heilongjiang Transport Development or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Shengda Mining |
| Heilongjiang Transport |
Shengda Mining and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Heilongjiang Transport
The main advantage of trading using opposite Shengda Mining and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Hoshine Silicon Ind |
| Heilongjiang Transport vs. Cultural Investment Holdings | Heilongjiang Transport vs. Gome Telecom Equipment | Heilongjiang Transport vs. Bus Online Co | Heilongjiang Transport vs. Holitech Technology 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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