Correlation Between Shengda Mining and Anhui Transport
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By analyzing existing cross correlation between Shengda Mining Co and Anhui Transport Consulting, you can compare the effects of market volatilities on Shengda Mining and Anhui 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Anhui Transport.
Diversification Opportunities for Shengda Mining and Anhui Transport
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shengda and Anhui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Shengda Mining i.e., Shengda Mining and Anhui Transport go up and down completely randomly.
Pair Corralation between Shengda Mining and Anhui Transport
Assuming the 90 days trading horizon Shengda Mining Co is expected to under-perform the Anhui Transport. In addition to that, Shengda Mining is 1.38 times more volatile than Anhui Transport Consulting. It trades about -0.07 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.04 per unit of volatility. If you would invest 948.00 in Anhui Transport Consulting on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Anhui Transport Consulting or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shengda Mining Co vs. Anhui Transport Consulting
Performance |
| Timeline |
| Shengda Mining |
| Anhui Transport Cons |
Shengda Mining and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Anhui Transport
The main advantage of trading using opposite Shengda Mining and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Anhui 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 Anhui Transport will offset losses from the drop in Anhui Transport'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 |
| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
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 Positions Ratings module to 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.
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