Correlation Between Shengda Mining and Dongxing Sec
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By analyzing existing cross correlation between Shengda Mining Co and Dongxing Sec Co, you can compare the effects of market volatilities on Shengda Mining and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Dongxing Sec.
Diversification Opportunities for Shengda Mining and Dongxing Sec
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shengda and Dongxing is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Shengda Mining i.e., Shengda Mining and Dongxing Sec go up and down completely randomly.
Pair Corralation between Shengda Mining and Dongxing Sec
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.61 times more return on investment than Dongxing Sec. However, Shengda Mining Co is 1.65 times less risky than Dongxing Sec. It trades about -0.16 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.19 per unit of risk. If you would invest 1,301 in Shengda Mining Co on October 10, 2024 and sell it today you would lose (70.00) from holding Shengda Mining Co or give up 5.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shengda Mining Co vs. Dongxing Sec Co
Performance |
Timeline |
Shengda Mining |
Dongxing Sec |
Shengda Mining and Dongxing Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shengda Mining and Dongxing Sec
The main advantage of trading using opposite Shengda Mining and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.Shengda Mining vs. Jinhe Biotechnology Co | Shengda Mining vs. Bomesc Offshore Engineering | Shengda Mining vs. Beijing Mainstreets Investment | Shengda Mining vs. Beijing Yanjing Brewery |
Dongxing Sec vs. Liaoning Dingjide Petrochemical | Dongxing Sec vs. HeBei Jinniu Chemical | Dongxing Sec vs. Jinsanjiang Silicon Material | Dongxing Sec vs. Jinling Hotel Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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