Correlation Between Shengda Mining and Zhejiang Yongjin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shengda Mining Co and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Shengda Mining and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Zhejiang Yongjin.
Diversification Opportunities for Shengda Mining and Zhejiang Yongjin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengda and Zhejiang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Shengda Mining i.e., Shengda Mining and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Shengda Mining and Zhejiang Yongjin
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.41 times more return on investment than Zhejiang Yongjin. However, Shengda Mining is 1.41 times more volatile than Zhejiang Yongjin Metal. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.03 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 Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Shengda Mining |
| Zhejiang Yongjin Metal |
Shengda Mining and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Zhejiang Yongjin
The main advantage of trading using opposite Shengda Mining and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin'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 |
| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Rongsheng Petrochemical 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |