Correlation Between Shengda Mining and Touchstone International
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By analyzing existing cross correlation between Shengda Mining Co and Touchstone International Medical, you can compare the effects of market volatilities on Shengda Mining and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Touchstone International.
Diversification Opportunities for Shengda Mining and Touchstone International
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengda and Touchstone is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Shengda Mining i.e., Shengda Mining and Touchstone International go up and down completely randomly.
Pair Corralation between Shengda Mining and Touchstone International
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.12 times more return on investment than Touchstone International. However, Shengda Mining is 1.12 times more volatile than Touchstone International Medical. It trades about 0.32 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.14 per unit of risk. If you would invest 1,227 in Shengda Mining Co on October 29, 2024 and sell it today you would earn a total of 163.00 from holding Shengda Mining Co or generate 13.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Touchstone International Medic
Performance |
| Timeline |
| Shengda Mining |
| Touchstone International |
Shengda Mining and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Touchstone International
The main advantage of trading using opposite Shengda Mining and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Shengda Mining vs. China Building Material | Shengda Mining vs. Jilin OLED Material | Shengda Mining vs. Advanced Technology Materials | Shengda Mining vs. Super Dragon Engineering Plastics |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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