Correlation Between Shengda Mining and Cansino Biologics
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By analyzing existing cross correlation between Shengda Mining Co and Cansino Biologics, you can compare the effects of market volatilities on Shengda Mining and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Cansino Biologics.
Diversification Opportunities for Shengda Mining and Cansino Biologics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengda and Cansino is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Shengda Mining i.e., Shengda Mining and Cansino Biologics go up and down completely randomly.
Pair Corralation between Shengda Mining and Cansino Biologics
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 1.02 times more return on investment than Cansino Biologics. However, Shengda Mining is 1.02 times more volatile than Cansino Biologics. It trades about 0.02 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.04 per unit of risk. If you would invest 1,352 in Shengda Mining Co on November 2, 2024 and sell it today you would earn a total of 32.00 from holding Shengda Mining Co or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shengda Mining Co vs. Cansino Biologics
Performance |
| Timeline |
| Shengda Mining |
| Cansino Biologics |
Shengda Mining and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Cansino Biologics
The main advantage of trading using opposite Shengda Mining and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Shengda Mining vs. Fuda Alloy Materials | Shengda Mining vs. Lander Sports Development | Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. China Sports Industry |
| Cansino Biologics vs. Integrated Electronic Systems | Cansino Biologics vs. Changjiang Publishing Media | Cansino Biologics vs. Dongnan Electronics Co | Cansino Biologics vs. Thinkingdom Media Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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