Correlation Between Shengda Mining and Hainan Mining
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By analyzing existing cross correlation between Shengda Mining Co and Hainan Mining Co, you can compare the effects of market volatilities on Shengda Mining and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Hainan Mining.
Diversification Opportunities for Shengda Mining and Hainan Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shengda and Hainan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Shengda Mining i.e., Shengda Mining and Hainan Mining go up and down completely randomly.
Pair Corralation between Shengda Mining and Hainan Mining
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Hainan Mining. In addition to that, Shengda Mining is 1.73 times more volatile than Hainan Mining Co. It trades about -0.09 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 688.00 in Hainan Mining Co on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Hainan Mining Co or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shengda Mining Co vs. Hainan Mining Co
Performance |
| Timeline |
| Shengda Mining |
| Hainan Mining |
Shengda Mining and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Hainan Mining
The main advantage of trading using opposite Shengda Mining and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Shanghai Xinhua Media | Hainan Mining vs. Guangzhou KingTeller Technology | Hainan Mining vs. Jiujiang Shanshui Technology | Hainan Mining vs. Sinofibers 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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