Correlation Between Shengda Mining and Aluminum Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengda Mining Co and Aluminum Corp of, you can compare the effects of market volatilities on Shengda Mining and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Aluminum Corp.
Diversification Opportunities for Shengda Mining and Aluminum Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengda and Aluminum is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Shengda Mining i.e., Shengda Mining and Aluminum Corp go up and down completely randomly.
Pair Corralation between Shengda Mining and Aluminum Corp
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.24 times more return on investment than Aluminum Corp. However, Shengda Mining is 1.24 times more volatile than Aluminum Corp of. It trades about -0.01 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.1 per unit of risk. If you would invest 1,366 in Shengda Mining Co on September 14, 2024 and sell it today you would lose (11.00) from holding Shengda Mining Co or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Aluminum Corp of
Performance |
| Timeline |
| Shengda Mining |
| Aluminum Corp |
Shengda Mining and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Aluminum Corp
The main advantage of trading using opposite Shengda Mining and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp'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 |
| Aluminum Corp vs. Shengda Mining Co | Aluminum Corp vs. Dareway Software Co | Aluminum Corp vs. Xizi Clean Energy | Aluminum Corp vs. JCHX Mining 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |