Correlation Between Shengda Mining and JuneYao Dairy
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By analyzing existing cross correlation between Shengda Mining Co and JuneYao Dairy Co, you can compare the effects of market volatilities on Shengda Mining and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and JuneYao Dairy.
Diversification Opportunities for Shengda Mining and JuneYao Dairy
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and JuneYao is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Shengda Mining i.e., Shengda Mining and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Shengda Mining and JuneYao Dairy
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.38 times more return on investment than JuneYao Dairy. However, Shengda Mining Co is 2.61 times less risky than JuneYao Dairy. It trades about -0.24 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.24 per unit of risk. If you would invest 1,338 in Shengda Mining Co on October 12, 2024 and sell it today you would lose (106.00) from holding Shengda Mining Co or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. JuneYao Dairy Co
Performance |
| Timeline |
| Shengda Mining |
| JuneYao Dairy |
Shengda Mining and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and JuneYao Dairy
The main advantage of trading using opposite Shengda Mining and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Shengda Mining vs. Sichuan Jinshi Technology | Shengda Mining vs. Winner Medical Co | Shengda Mining vs. Allgens Medical Technology | Shengda Mining vs. Touchstone International Medical |
| JuneYao Dairy vs. Shanghai Material Trading | JuneYao Dairy vs. Hubei Geoway Investment | JuneYao Dairy vs. Jointo Energy Investment | JuneYao Dairy vs. Nanjing Putian Telecommunications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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