Correlation Between Shengda Mining and Ningbo Jintian
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By analyzing existing cross correlation between Shengda Mining Co and Ningbo Jintian Copper, you can compare the effects of market volatilities on Shengda Mining and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Ningbo Jintian.
Diversification Opportunities for Shengda Mining and Ningbo Jintian
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Ningbo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Shengda Mining i.e., Shengda Mining and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Shengda Mining and Ningbo Jintian
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.7 times more return on investment than Ningbo Jintian. However, Shengda Mining is 1.7 times more volatile than Ningbo Jintian Copper. It trades about 0.01 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about -0.01 per unit of risk. If you would invest 1,426 in Shengda Mining Co on October 25, 2024 and sell it today you would lose (54.00) from holding Shengda Mining Co or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Shengda Mining |
| Ningbo Jintian Copper |
Shengda Mining and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Ningbo Jintian
The main advantage of trading using opposite Shengda Mining and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Shengda Mining vs. HeNan Splendor Science | Shengda Mining vs. Changchun UP Optotech | Shengda Mining vs. CGN Nuclear Technology | Shengda Mining vs. Ping An Insurance |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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